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Pharoah Co. purchased some equipment 3 years ago. The company's required rate of return is...

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Accounting

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Pharoah Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(2500). Annual cost savings were: $22000 for year 1; $18000 for year 2; and $14000 for year 3. The amount of the initial investment was Year 1 Present Value PV of an Annuity of 1 at 12% of 1 at 12% 0.893 0.893 0.797 1.690 0.712 2.402 2 3 O $40736. O $41460. O $45736. O $46460

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