XYZ Company is considering buying a new piece of equipment and has gathered the following information related to this purchase: Initial investment Annual cost savings Salvage value in 6 years Repair in 3 years Cost of capital Life of project ... ? $20,000 20% of original cost of the equipment $11,000 10% 6 years If the new equipment is purchased then the equipment that is currently in use can be sold at the time of buying the new equipment for $7,000. The net present value of the new piece of equipment was determined to be -$30,358. Calculate the salvage value for this piece of equipment. Ignore the effects of income taxes. You will need to use the present value table factors posted in carmen to answer this question. To access these factors, click modules and then scroll to week 11. Click on the link labeled present value table factors. No credit will be awarded for this question using a means other than these table factors to answer this question.

WZ Company is considering buying a new piece of equipment and has gathered the following information related to this purchase: Inittal investment Annual cost savings Salvage value in 6 years Repair in 3 years. Cost of capital Life of project. ? $20,000 20% of original cost of the equipment $11,000 108 6 years If the new equipment is purchased then the equipment that is currently in use can be sold at the tine of buying the new equipment for $7,000. The net present value of the new piece of equipment was determined to be $30,358. Calculate the salvage yalue for this plece of equipment. Ignore the effects of incone taxes. You will need to use the present value table factors posted in carmen to answer this question. To access these factors, click nodules and then scroll to week 21. Cutck on the tink taboled present value table factors. No credit with be awarded for this question using a means other than these table factors to answer thits