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yellow bus company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is
yellow bus company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $384,000 with a six-year life and no slavage value. it will be depreciated on a straight-line basis. The company expects to sell 153,600 units of the equipment's product each year. The expected annual income related to this equipment follows.... (see attached picture)
If at least an 8% return on this investment must be earned, compute the net present value of this investment.
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