Question
The Concord Company is planning to purchase $491,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the
The Concord Company is planning to purchase $491,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment: Year Projected Cash Flows 1 $222,000 2 146,000 3 116,000 4 52,100 5 70,000 6 40,500 7 48,700 Total $695,300 Click here to view the factor table. Calculate the net present value of the proposed equipment purchase. Concord uses a 11% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)
Net present value $___________
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