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Calculate the net present value of the new production

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Reference no: EM13912752

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.

Reference no: EM13912752

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