Question
Using only the factors provided in this table below (do not use excel, a scientific calculator, know the correct factor to use) Interest is 6%
Using only the factors provided in this table below (do not use excel, a scientific calculator, know the correct factor to use) Interest is 6% per period Periods FV of $1 PV of $1 FVA of $1 PVA of $1 1 1.0600 .9434 2.0600 0.9434 2 1.1236 .8900 3.1836 1.8334 3 1.1910 .8396 4.3746 2.6730 4 1.2625 .7921 5.6371 3.4651 5 1.3382 .7473 6.9753 4.2124 Nolan Co. is planning an equipment purchase today. The companys required rate of return is 6%, and the initial investment of the project was $(16730). The equipment will generate annual cost savings of: $4510 each year for years 1-5.
These estimated residual value of the equipment will be $2010 at the end of year 5. The net present value of the project is $________.
If the net present value is negative, show -, do not use (). Example net present value of negative 1,000 would be answered -1,000
The answer is 3,770
Please explain how this is the answer step by step
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