Question
A business is considering purchasing a piece of new equipment for $100,000. The equipment will generate the following revenues: Year 1: $50,000 Year 2: $30,000
A business is considering purchasing a piece of new equipment for $100,000. The equipment will generate the following revenues:
Year 1: $50,000
Year 2: $30,000
Year 3: $20,000
Year 4: $10,000
The machine can be sold at the end of the year four for $25,000. Assume a discount of 8%.
What is the net present value(NPV)?
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Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan K. Wolcott
2nd Edition
978-0-470-7694, 0470769424, 978-0470769423
