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10.Triple Crossing Brewing is considering installing a new cooler (equipment) in order to increase the volume and variety of beverages they can offer. The new
10.Triple Crossing Brewing is considering installing a new cooler (equipment) in order to increase the volume and variety of beverages they can offer. The new cooler will cost $26,000. It is expected to last 7 years but only if the cooler is overhauled (REPAIRED) at a cost of $4,000 at the end of year 4The new cooler is expected to have a $2,000 salvage value at the end of 7 years. The new cooler is expected to generate additional revenues of S15,000 per year with an increase in expenses of $9,000 per year. Triple Crossing's discount rate is 12%. What is the net present value of this investment opportunity? Should they invest in the cooler? Hin: determine the PV of each item. Be careful if the item is an annuity (annual) or one time only event. PV of an annuity of Sl Tine | 10% | 12% | 14% eriod Time | 10% | 12% | 14% eriod 0.909 1.736 1.690 1.647 2 0.8260.797 0.769 0.712 0.675 3.170 3.037 2.914 3.7913.605 3.433 4.355 4.1 3.889 4.868 4.5644.288 5.3354.968 4.639 0.751 0.683 0.636 0.592 0.621 0.564 0.507 0.456 0.513 0.452 0.400 0.467 0.404 0.351 0.567 0.519 85.335
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