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please help with this problem Newport Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result
please help with this problem
Newport Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net cash flow of $200,000. The equipment will have an initial cost of $900,000 and a 6 -year useful life with no salvage value. If the company's cost of capital is 8%, what is the net present value? (Future Value of $1 Present Value of \$1, Future Value Annuity of \$1. Present Value Annuity of \$1) Note: Use the appropriate factor from the PV tables. Multiple Choice $900.000 $24,580 Multiple Choice $900,000 $24,580 $924,580 $300,000 Newport Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net cash flow of $200,000. The equipment will have an initial cost of $900,000 and a 6 -year useful life with no salvage value. If the company's cost of capital is 8%, what is the net present value? (Future Value of $1 Present Value of \$1, Future Value Annuity of \$1. Present Value Annuity of \$1) Note: Use the appropriate factor from the PV tables. Multiple Choice $900.000 $24,580 Multiple Choice $900,000 $24,580 $924,580 $300,000 Step by Step Solution
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