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Briar Corporation is considering the purchase of a new piece of equipment. The cost savings...

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Accounting

Briar Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net cash flow of $201,000. The equipment will have an initial cost of $1,201,000 and an 8-year useful life. The salvage value of the equipment is estimated to be $201,000. Briars cost of capital is 6%.(Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1)
Note: Use appropriate factor from the PV tables.

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