Du Monde Corp is considering the purchase of a new piece of equipment. The cost...
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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? Ignore income taxes. Refer the Table 2and Table 4. (Round your PV factors to 4 decimal places and final answer to the nearest dollar amount.)
$18,948
$(31,966)
$105,000
$187,000
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