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Bramble Inc. is considering purchasing equipment costing $41000 with a 7-year useful life. The equipment will provide cost savings of $10000 and will be depreciated
Bramble Inc. is considering purchasing equipment costing $41000 with a 7-year useful life. The equipment will provide cost savings of $10000 and will be depreciated straight-line over its useful life with no salvage value. Bramble Inc. requires a 11% rate of return. What is the approximate net present value of this investment?
| Present Value of an Annuity of 1 | ||||||
| Period | 9% | 10% | 11% | 12% | 13% | 16% |
| 7 | 5.033 | 4.868 | 4.712 | 4.564 | 4.423 | 4.039 |
$31000
$6120
$4640
$7680
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