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Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the equpment would result in an annual increase in
Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the equpment would result in an annual increase in cash flow of $90,000. The equipment will have an initial cost of $400,000 and have a s.year life. The salvage value of the equipment is estimated to be $75.000. If the hurdle rate is 7%, what is the approximate net present value ignore income taxes (Future Value of 51. Present Value of $1. Future Value Annuity of S1, Present Value Annuity of $1.1 (Use appropriate factor from the PV tablet. Round your final answer to the nearest dollar amount.) Multiple Choice $22,493 . $90,000 $130,982) $165,000
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