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Pina Colada, Inc. is considering purchasing equipment costing $42000 with a 6-year useful life. The equipment will provide annual cost savings of $12000 and will
Pina Colada, Inc. is considering purchasing equipment costing $42000 with a 6-year useful life. The equipment will provide annual cost savings of $12000 and will be depreciated straight-line over its useful life with no salvage value. Pina Colada requires a 10% rate of return. Period 8% 4.623 Present Value of an Annuity of 1 9% 10% 11% 12% 15% 4.486 4.355 4.231 4.111 3.784 6 What is the approximate net present value of this investment? O $8772 $11832 O $30000 O $10260
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