Calculate the approximate net present value


Du Monde Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $105,000. The equipment will have an initial cost of $430,000 and have a 5 year life. The salvage value of the equipment is estimated to be $82,000. If the hurdle rate is 10%, what is the approximate net present value?

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Accounting Basics: Calculate the approximate net present value
Reference No:- TGS0682797

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