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i need help Monty Industries is considering the purchase of new equipment costing $1,220,000 to replace existing equipment that will be sold for $181,000. The
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Monty Industries is considering the purchase of new equipment costing $1,220,000 to replace existing equipment that will be sold for $181,000. The new equipment is expected to have a $207,000 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 39,400 units annually at a sales price of $27 per unit. Those units will have a variable cost of $12 per unit. The company will also incur an additional $93,900 in annual fixed costs. Click here to view the factor table. Calculate the present value of each cash flow assuming an 5% discount rate. (For colculotion purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal ploce, es. 58,971. Enter negative amounts using a negative sign preceding the number es. 58,971 or parentheseses. (58,971)d Step by Step Solution
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