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Ayayai Industries is considering the purchase of new equipment costing ( $ 1,200,000 ) to replace existing equipment that will be sold for ( $
Ayayai Industries is considering the purchase of new equipment costing \\( \\$ 1,200,000 \\) to replace existing equipment that will be sold for \\( \\$ 180,000 \\). The new equipment is expected to have a \\( \\$ 200,000 \\) salvage value at the end of its 5 -year life. During the period of its use, the equipment will allow the company to produce and sell an additional 30,000 units annually at a sales price of \\( \\$ 20 \\) per unit. Those units will have a variable cost of \\( \\$ 12 \\) per unit. The company will also incur an additional \\( \\$ 90,000 \\) in annual fixed costs. Click here to view the factor table. Calculate the present value of each cash flow assuming an \6 discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971. Enter negative amounts using a negative sign preceding the number e.g. \\( -58,971 \\) or parentheses e.g. \\( (58,971) \\).)
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