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Answer plz. Help Save & Exit Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would
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Help Save & Exit Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $201,000. The equipment will have an initial cost of $945,000 and have a year life. There is no salvage value for the equipment. If the hurdle rate is 8%, what is the approximate net present value? Ignore income taxes. (Future Value of $1, Present Value of $1. Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Multiple Choice Negative $15,797 Positive $315,000 Zero Positive $15,797 Step by Step Solution
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