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Question 13 1 pts ABC Company is thinking of buying a new piece of equipment...

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Question 13 1 pts ABC Company is thinking of buying a new piece of equipment for $448,000. This equipment would last 10 years and would generate expected cash revenues of $482,000 and expected cash expenditures of $365,000. If the new equipment is purchased the old equipment would be sold immediately for an estimated price of $100,000. The old equipment cost $260,000 and had Accumulated Depreciation of $150,000. The company's tax rate is 22% and the cost of capital is 10%. Should ABC Company buy the new equipment? ONo. The cost of the new equipment and the loss on the sale of the old equipment exceeds the present value of the future cash flows. Yes. The NPV is a positive $271,117 No. Net present value is not positive Yes. The NPV is a positive $275,517 (rounded)

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