Diane Company buys equipment for $300,000 that will last for 5 years. The equipment will...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Diane Company buys equipment for $300,000 that will last for 5 years. The equipment will generate cash flows of $100,000 per year and will have an estimated salvage value $50,000 at the end of its life. Ignore income taxes. The discount rate for the company is 8%. Compute the net present value of this investment. Present value tables are presented below.
Present value of $1
Periods 8%
1 .926
2 .857
3 .794
4 .735
5 .681
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.