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Question 4: A company is considering purchasing equipment costing $150,000. The equipment is expected to reduce costs in years 1 & 2 by $35,000 annually,
Question 4: A company is considering purchasing equipment costing $150,000. The equipment is expected to reduce costs in years 1 & 2 by $35,000 annually, year 3 to 8 by $24,000 annually, and in year 9 by $7,500. In year 9, the equipment can be sold at a salvage value of $20,000. Calculate the NPV for this proposal. [Hint: draw a timeline] dont know this is what i got
Question 4: A company is considering purchasing equipment costing $150,000. The equipment is
expected to reduce costs in years 1 & 2 by $35,000 annually, year 3 to 8 by $24,000 annually, and in year
9 by $7,500. In year 9, the equipment can be sold at a salvage value of $20,000. Calculate the NPV for this
proposal. [Hint: draw a timeline]
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
IFRS Edition
978-1118443965, 1118800532, 9781118800539, 978-0470873991
