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Denver Company is considering the purchase of equipment that would cost $40,000 in year zero...

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Accounting

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Denver Company is considering the purchase of equipment that would cost $40,000 in year zero or now and offer annual cash inflows of $10,500 paid at the end of the year over its useful life of 5 years. Assuming a required rate of return of 8%. answer could be off due to rounding. Present Value Factor Year 1 at 8% = 0.926 Present Value Factor Year 2 at 8% = 0.857 Present Value Factor Year 3 at 8% = 0.794 Present Value Factor Year 4 at 8% = 0.735 Present Value Factor Year 5 at 8% = 0.681 The net present value is : A. $8,512 B. $7,150 C. $1,923 D. $12,500

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