Question
Door to Door Moving Company is considering purchasing new equipment that costs $ 710 comma 000$710,000. Its management estimates that the equipment will generate cash
Door to Door Moving Company is considering purchasing new equipment that costs
$ 710 comma 000$710,000.
Its management estimates that the equipment will generate cash inflows as? follows:
Year 1 | $ 202 comma 000$202,000 |
2 | 202 comma 000202,000 |
3 | 270 comma 000270,000 |
4 | 270 comma 000270,000 |
5 | 164 comma 000164,000 |
Present value of? $1:
?6% | ?7% | ?8% | ?9% | ?10% | |
1 | 0.943 | 0.935 | 0.926 | 0.917 | 0.909 |
2 | 0.890 | 0.873 | 0.857 | 0.842 | 0.826 |
3 | 0.840 | 0.816 | 0.794 | 0.772 | 0.751 |
4 | 0.792 | 0.763 | 0.735 | 0.708 | 0.683 |
5 | 0.747 | 0.713 | 0.681 | 0.650 | 0.621 |
The? company's annual required rate of return is? 8%. Using the factors in the? table, calculate the present value of the cash inflows.? (Round all calculations to the nearest whole? dollar.)???
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