Lakeside Inc. is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $10,000 per month. The new equipment will have a five-year life and cost $420,000, with an estimated salvage value of $20,000. Lakesides cost of capital is 10%. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.)

Required:

Calculate the net present value of the new production equipment. (Round your final answer to nearest whole dollars.)

Lakeside Inc. is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $10.000 per month. The new equipment will have a five-year life and cost $420,000, with an estimated salvage value of $20,000. Lakeside's cost of capital is 10%. Table 6-4 and Table 6.5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required: Calculate the net present value of the new production equipment. (Round your final answer to nearest whole dollars.) Net present value