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can i get help with this question 5 please there two small parts i don't understand Santana Rey is considering the purchase of equipment for
can i get help with this question 5 please there two small parts i don't understand Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $300,000 and to have a six- year life and no salvage value. The equipment is expected to generate income of $12,939 and net cash flow of $62,939 in each year of its six-year life. Santana requires an 8% return on all investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Compute the net present value for this equipment Cash Flow nnual cash flow Net Cash X Flows $ 62.939 x Present Value of Annuity at 9% Present Value of Net Cash Flows S Select Chart Present Value of an Annuity of 1 Initial investment Net present value 300,00 Compute internal rate of return for this equipment. Present Value Factor Numerator: Denominator: Initial investment 1 Annual net cash flow Present Value Factor $ 300,000 $ 62,939 4.7665 Find this factor on the appropriate table to estimate the Internal Rate of Return n = Internal Rate of Return %
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