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help i dont understand Elsie Moving Company is considering purchasing new equipment that costs $726,000. Its management estimates that the equipment will generate cash flows
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Elsie Moving Company is considering purchasing new equipment that costs $726,000. Its management estimates that the equipment will generate cash flows as follows: Year 1 $202,000 202,000 3 264.000 N 3 4 264,000 5 160,000 The company's required rate of return is 10%. Using the factors in the table below, calculate the present yalue of the cash inows. (Round all calculations to the nearest whole dollar.) yaluco 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 4 0.792 0.763 0.735 0.708 0.683 un 5 0.747 0.713 0.681 0.650 0.621 $797.481 $793,414 $808.971 $828,406 Step by Step Solution
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