Question
Jackson Company invests in a new piece of equipment costing $48668. The equipment is expected to yield the following amounts per year for the equipment's
Jackson Company invests in a new piece of equipment costing $48668. The equipment is expected to yield the following amounts per year for the equipment's four-year useful life:
| Cash revenues | $60,915 |
| Cash expenses | (31,377) |
| Depreciation expenses (straight-line) | (12,167) |
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|
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| Cost of capital | 14% |
What is the net present value of this investment in equipment?
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50 + Fun Financial Accounting Cases
Authors: Thomas E. McKee
1st Edition
1257824538, 978-1257824533
