A-14 Present Value Analysis in Nonprofit Organizations The Johnson Research Organization, a nonprofit organization that does not pay taxes, is consider estimated life of seven years so it will not have to use outsiders laboratories for certain types of work. The following are all of the cash laboratorye t with an at time 0) $6,050,000 Annual cash savings because outside laboratories are not used alvage value after seven years, which is the estimated life of this project 1,520,000 320,000 520,000 al cash outflow for people and supplies to ate the equipment 10% Required: Calculate the net present value of this decision. (Round PV factor to 3 decimal places.) 2 Should the organization buy the equipment? e Yes e No References Worksheet in Nonprofit Organizations