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19 Assume that a company is considering buying a new piece of equipment for $250,000 that would have a useful life of five years and
19 Assume that a company is considering buying a new piece of equipment for $250,000 that would have a useful life of five years and a salvage value of $26,000. The equipment would generate the following estimated annual revenues and expenses: $ 120,000 8 00:35:39 Revenues Less operating expenses: Commissions Insurance Depreciation Maintenance Net operating income $ 15,000 5,000 44,800 30,000 94,800 $ 25,200 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 17%, what is the net present value of this investment? Multiple Choice $(14,214) O $43,314 $(131,702) O $(157,529)
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