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 units 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 an 8% discount rate.

Cash flow:= Present Value

purchase of new equipment

salvage of old equipment

sales revenue

variable costs

additional fixed costs

salvage of new equipment