my there Pv value is diffrent than may numbers?? what i did is (total cash flow * PVF@11%) =PV

Chegg Study TEXTBOOK SOLUTIONS EXPERT Q&A Search home / study/business / finance / finance questions and answers/ gluon inc. is considering the purchase of a new high pressure glueball. it... Question: Gluon Inc. is considering the purchase of a new high press... Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $190,000 and sell its old low-pressure glueball, which is fully depreciated, for $34,000. The new equipment has a 10-year useful life and will save $42,000 a year in expenses. The opportunity cost of capital is 11%, and the firm's tax rate is 40%, what is the equivalent annual savings from the purchase if Gluon uses straight-line depreciation? Assume the new machine will have no salvage value Expert Answer o FinanceRaaj answered this 5,511 answers Was this answer helpful? Profit before Total Operating Present After tax rofit After tax Old machine New cash 1 Year l Cash flows Depreciation tax Tax@40% Depreciation l cashflows l sale proceeds l machine l flows | PVF@11%value 0400-190000-169600 1.000 -169600 34000"( 1-40% 0.901 29550 0.812 26621 0.73123983 0.659 21606 0.593 19465 0.55 17536 0.482 15798 0.434 14233 0.391 12822 0.35211552 23567 5.889 4002 4 42000 42000 42000 42000 1900023000 1900023000 1900023000 19000 23000 19000 23000 1900023000 19000 23000 19000 23000 19000 23000 1900023000 9200 13800 9200 13800 9200 13800 9200 13800 9200 13800 9200 13800 9200 13800 9200 13800 9200 13800 9200 13800 19000 19000 19000 19000 19000 19000 19000 19000 19000 19000 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 32800 Net present value 10 7 42000 42000 12 13 10 PVAF( 1196, 10) Equivalent annual savin 15