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The Flounder Company is planning to purchase $ 468,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment:

Year		Projected Cash Flows
1			$ 211,000
2			130,000
3			115,000
4			55,500
5			63,200
6			43,400
7			49,200
Total			$ 667,300

Calculate the net present value of the proposed equipment purchase. Flounder uses a 11% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)

Net present value

$

\fAPPENDIX 9.2 Present value of an annuity of $1 per period. Periods 5% 6% 7% 9% 10% 11% 12% 13 14% 16% 18% 20% 0,9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8621 0.8475 0.8333 1,8861 1,8594 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6052 1.5656 1.5278 MAWNK 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4868 2.4437 2.4018 2.3612 2.3216 2.2459 2.1743 2.1065 3.6299 3.5460 3,4651 3.3872 3.3121 3.2397 3.1698 3.1024 3.0373 2.9745 2.9137 2.7982 2.6901 2.5857 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7907 3.6959 3.6048 3.5172 3.4331 3.2743 3.1272 2.9905 6 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.6847 3.4976 3.3255 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.0386 3.8115 3.6045 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.3436 4.0776 3.8372 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.6065 4.3030 4.0310 10 8.1109 7.7217 * 7.3601 7.0236 6.7101 6.4177 6.1446 5.8892 5,6502 5.4262 5.2161 4.8332 4.4941 4.1925 11 8.7605 8.3064 7.8869 7.4987 7.1390 6.8052 6.4951 6.2065 5.9377 5.6869 5.4527 5.0285 4.6560 4.3271 12 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.4924 6.1944 5.9176 5.6603 5.1971 4.7932 4.4392 13 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 5.3423 4.9095 45327 14 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.9819 6.6282 6.3025 6.0021 5.4675 5.0081 4.6105 5,0916 4.6755 15 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 5.5755 9.4466 8.8514 8.3126 7.8237 7.3792 6.9740 6.6039 6.2651 5.6685 5.1624 4.7296 16 11.6523 10.8378 10.1059 6.7291 6.3729 5.7487 5.2223 4.7746 17 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.5-488 7.1196 6.8399 6.4674 5.8178 5.2732 4.8122 18 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.7016 7.2497 5.3162 4.8435 19 13.1339 120853 11.1581 10.3356 9.6036. 8.9501 8.3649 7.8393 7.3658 6.9380 6.5504 5.8775 12 4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.9633 7.4694 7,0248 6.6231 5.9268 5.3527 4.5696 20 13.5903 $1 (1+ 1) PVARI=