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Byron Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in

Byron 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 $112,000. The equipment will have an initial cost of $486,000 and have a 5 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.

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