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Help! Wison Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase
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Wison Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $50,000. The equipment will have an initial cost of $675,000 and have an 8 year life. The salvage value of the equipment is estimated to be $130,000. If the hurdle rate is 9%, what is the approximate net present value? (Future Value of $1, Present Value of $1, Future Value Annuity of \$1. Present Value Annuity of \$1.) (Use appropriate factor from the PV tabies, Round your final answer to the nearest dollar amount.) Multiple Choice Less than zero $130.000 $545,000 544,045 Step by Step Solution
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