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Required Information A company is considering the purchase of a piece of equipment that would cost $400,000 and would last for 10 years. At the
Required Information A company is considering the purchase of a piece of equipment that would cost $400,000 and would last for 10 years. At the end of 10 years, the equipment would have a salvage value of $96,500. The equipment would provide annual cost savings of $88,000. The company requires a minimum pretax return of 13% on all investment projects. (Ignore income taxes.) : Requlred: Provide your Excel input and the final net present value amount you calculated. (If a varlable is not used in the calculation, Input a zero (O). Omit the "$" and "%" signs In your response.) Round your answer to the nearest dollar and use a minus sign for negatlve numbers. Excel Input: Rate Nper PMT PV $ FV $ Net Present Value (NPV) Required: Input the required variables and the computed internal rate of return. (If a variable is not used in the calculation, Input a zero (O). Omit the "$" and "9" signs In your response.) Round your answer to one decimal place and use a minus sign for negative numbers. Excel Input: Rate Nper PMT PV FV $D O Internal Rate of Return (IRR)
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