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Newport Corporation is considering the purchase of a new plece of equipment. The cost savings ftom the equipment would resuit in an annual increase in
Newport Corporation is considering the purchase of a new plece of equipment. The cost savings ftom the equipment would resuit in an annual increase in net cash fow of $206,000. The equipment will have an initial cost of $905,000 and a 6 year life with no salvage value. if the compony/s cost of capital 5 10\%, what is the net present value? (Future Value of 51, Eresent Volue of 51. Euture Value Annuity of \$1. Present Value. Annulty of so Note: Use appropriate foctor from the PV tables. Round your final answer to the nearest dollar amount. Maible Choice 50 5(7,808) $7,808 $301667
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