2) Should this equipment purchase be made according to the NPV criterion?

• Yes
• No

Question 2 Advik is the financial advisor for his company and is considering the purchase of excavation equipment which will cost $81,000. The purchase of this equipment is expected to save his company $8,005 at the end of every year for 13 years. At the end of the 13 years, he expects the excavation equipment to have a residual (inflow) value of $16,900. The company requires a 5.6% rate of return. Round PV to the nearest cent. Round NPV to the nearest whole number. 1) What is the Net Present Value (NPV) of this equipment investment? Cash Inflows P/Y = C/Y = N = 1/4 = % PMT = $ FV = $ PV = $ (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV = $ (round to the nearest dollar)