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what would this be? Flounder Industries is considering the purchase of new equipment costing $1,208,000 to replace existing equipment that will be sold for $182,600.
what would this be? Flounder Industries is considering the purchase of new equipment costing $1,208,000 to replace existing equipment that will be sold for $182,600. The new equipment is expected to have a $220,000 salvage value at the end of its 5 -year life. During the period of its use, the equipment will allow the company to produce and sell an additional 34,500 units annually at a sales price of $29 per unit. Those units will have a variable cost of $13 per unit. The company will also incur an additional $94,100 in annual fixed costs. Click here to view the factor table. Calculate the present value of each cash flow as suming an 7% discount rate. (For calculation purposes, use 4 decimal places as disployed in the factor table provided and round final answer to 0 decimal ploce, es. 58,971. Enter negotive amounts using a negative sign preceding the number eg. 58,971 or parentheses eg. (58.971).)
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