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A purchase of equipment is under consideration that would cost $450,000, and would last for 5 years. At the end of its useful life, the
A purchase of equipment is under consideration that would cost $450,000, and would last for 5 years. At the end of its useful life, the equipment would have a salvage value of $55,000. The equipment would reduce operating costs by $115,000 per year. Working capital of $9,000 would be needed immediately, all of which would be released at the end of 5 years. The company requires a minimum return of 13% on all investment projects. Determine the net present value of the project, to the nearest whole dollar. If your computation results in a negative amount, indicate that with a minus sign
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