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Determine the net present value of the equipment is

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Reference no: EM132502196

Consider the following information:

Initial cost of equipment $108,000

Sales tax and delivery costs $7,000

Estimated life 7 years

Salvage value $11,000

Annual cash inflows $31,000

Estimated cost of capital 13%

Question 1: Without considering the effect of income taxes, the net present value of the equipment is:

Option 1) $113,000

Option 2) $26,777

Option 3) $22,082

Option 4) $29,101

Option 5) $33,757

Option 6) ($77,000)

Reference no: EM132502196

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