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Lila is the financial advisor for her company and is considering the purchase of excavation equipment which will cost $81,000. The purchase of this equipment
Lila is the financial advisor for her company and is considering the purchase of excavation equipment which will cost $81,000. The purchase of this equipment is expected to save her company $9,178 at the end of every year for 12 years. At the end of the 12 years, she expects the excavation equipment to have a residual (inflow) value of $12,900. The company requires a 6.5% rate of return. Round PV to the nearest cent. Round NPV to the nearest whole number. 1) What is the Net Present Value (NPV) of this equipment investment? Cash Inflows h P/Y = C/Y = N = 1/4 = % PMT = $ FV = $ PV = $
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