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Calculate the net present value of the new production
Course:- Managerial Accounting
Reference No.:- EM13912752





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Net present value Lakeside, Inc., is considering replacing old production equipment with state of the art technology that will allow production cost savings of$10,000 per month. The new equipment will have a five year life and cost $450,000, with an estimated salvage value of $30,000. Lakeside's cost of capital is 10%.

Required:

Calculate the net present value of the new production equipment.




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