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Makoto Inc. is considering purchasing equipment costing $11,000 with a 6-year useful life. The equipment...

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Accounting

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Makoto Inc. is considering purchasing equipment costing $11,000 with a 6-year useful life. The equipment will provide annual cash savings of $3,100 and will be depreciated straight-line over its useful life with no salvage value. Makoto requires a 10% rate of return. What is the approximate net present value of this investment? a) $1,744 b) $2,501 c) $13,501 d) $13,925

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