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The St . Louis to Seattle Railroad is considering acquiring equipment at a cost of $ 3 5 2 , 0 0 0 . The

The St. Louis to Seattle Railroad is considering acquiring equipment at a cost of $352,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $44,000. The company's minimum desired rate of return for net present value analysis is 12%.
Present Value of an Annuity of $1 at Compound Interest
Year 6%10%12%15%20%
10.9430.9090.8930.8700.833
21.8331.7361.6901.6261.528
32.6732.4872.4022.2832.106
43.4653.1703.0372.8552.589
54.2123.7913.6053.3532.991
64.9174.3554.1113.7853.326
75.5824.8684.5644.1603.605
86.2105.3354.9684.4873.837
96.8025.7595.3284.7724.031
107.3606.1455.6505.0194.192

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