question 11

easton ltd is considering investing in new piece of machinery for its factory the machine costs $340000 and is expected to last 7 years. it estimates that annual cash flows would be $82000 and the equipment would have a salvage value of $13000 the company hurdle rate is 11% what is the net present value of this investment ?(ignore income taxes)

1-$46400

2-$247000

3-$87625

4-$52662

5-$234000