concord industries is considering the purchase of new equipment costing $1,217000 to replace existing equipment that will be sold for $180,200. the new equipment is
concord industries is considering the purchase of new equipment costing $1,217000 to replace existing equipment that will be sold for $180,200. the new equipment is expected ot have a $218,000 salvage value at the end of its 5 year life. during the period of its use, the equipment will allow the company to produce and sell an additional 36,300 nits annually at a sales price of $27 per unit. those units will have a variable cost of $15 per unit. the company will also incur an additional $94,500 in annual fixed costs.
calculate the present value of each cash flow assuming 8% discount rate.
What I need is the present value of each of these things below:
purchase of new equipment
salvage of old equipment
sales revenue
variable costs
additional fixed costs
salvage of new equipment
thanks for your help!!!
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