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15 please 12. Let it Snow Company is considering purchasing new equipment to use in its daily operations and has asked you to prepare a
15 please 12. Let it Snow Company is considering purchasing new equipment to use in its daily operations and has asked you to prepare a capital budgeting analysis using the net present value method. Let It Snow Company as a 21% tax rate and a 10% cost of capital Current purchase price of the equipment Let It Snow Company is considering purchasing is $75,000. In addition, Let It Snow Company will have to pay additional costs which include $3,000 in freight costs to have the equipment delivered, $500 for insurance while the equipment is in transit, and $1,500 for installation and setup charges. 15. The new equipment will create cash inflows from additional revenue of $20,000 annually for 8 years. Let it Snow Company as a 21% tax rate and a 10% cost of capital. Calculate the present value of the cash flows from additional revenue. (5 points)
15 please
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