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PLEASE SHOW THE CALCULATOR INPUTS for the below work: Woods Company is considering the purchase of some equipment. The initial investment will be $100,000. The
PLEASE SHOW THE CALCULATOR INPUTS for the below work:
Woods Company is considering the purchase of some equipment. The initial investment will be $100,000. The estimated useful life of the equipment will be 5 years, at which point it will have a zero terminal salvage value. The annual savings in cash operating costs will equal $19,000, and the company has a minimum desired rate of return of 12%. Use straight-line depreciation and ignore income taxes.
Compute:
a. Net Present Value
b. Payback Period
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