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An equipment has a five year physcial life. The cost of capital is 10%. Provided below is the following information regarding cash flows related to
An equipment has a five year physcial life. The cost of capital is 10%. Provided below is the following information regarding cash flows related to the equipment Year Cash Flow Salvage Value 0 $-40,000 $40,000 1 $12,000 $30,000 2 $15,000 $25,000 3. $12,000 $15,000 4. $8,000 $6,000 5. $6,000 $0.00 What is the NPV of this project if the equipment is used for three years and then sold? O a. $1818.18 b. $3,966.94 O c. $1,883.75 O d. $3,591.28 O e. $1,511.20
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