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Wilson Corp. is considering the purchase of a new plece of equipment. The cost savings from the equipment would result in an annual increase in
Wilson Corp. is considering the purchase of a new plece of equipment. The cost savings from the equipment would result in an annual increase in net Income after tax of $51,000. The equipment will have an initial cost of $655,000 and have an 8-year life. The salvage value of the equipment is estimated to be $110,000. If the hurdle rate is 9%, what is the approximate not present value? (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of S1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Multiple Choice $59,542 zero $545,000 $110,000
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