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Assume that a company is considering buying a new piece of equipment for $250,000 that would have a useful life of five years and a
Assume that a company is considering buying a new piece of equipment for $250,000 that would have a useful life of five years and a salvage value of $30,000. The equipment would generate the following estimated annual revenues and expenses: Revenues Commissions Insurance $ 120,000 Less operating expenses: $ 15,000 5,000 94,000 $26,000 Depreciation Maintenance Net operating income 44,000 30,000 Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 17%, what is the net present value of this investment
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