What is the approximate net present value

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Reference no: EM131287758

Byron Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $102,500. The equipment will have an initial cost of $442,000 and have a 5 year life. The salvage value of the equipment is estimated to be $81,000. If the hurdle rate is 7%, what is the approximate net present value? Ignore income taxes. (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Round your PV factors to 4 decimal places and final answer to the nearest dollar amount.

Reference no: EM131287758

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