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 $145,000. The equipment will have an initial cost of $520,000 and have a 5 year life. The salvage value of the equipment is estimated to be $83,000. If the hurdle rate is 8%, what is the approximate net present value? Ignore

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 $145,000. The equipment will have an initial cost of $520,000 and have a 5 year life. The age value of the equipment is estimated to be $2000. It the hurdle rate is 8%, what is the approximate net present value? Ignore income taxes. Future Value of $t Present Value of $t. Future Value Annuity of $1. Present Value Annuity of Use propriate factor from the PV tables. Round your final answer to the nearest dolar amount) O $228.000 O $158,942) $145,000 Sr.401