Enidpeport industries is comidering the purchase of new equigitent costing $1,500,000 to replace existing equipment...
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Enidpeport industries is comidering the purchase of new equigitent costing $1,500,000 to replace existing equipment that will be sold for $150.000. The new equipment is eepected to have a 5220.000 salvage value at the end of its 5 -year life. During the period of its wre, the equipenent will allow the conpamy to produce and sell an additional 25,000 units annually at a sales price of 336 per unit. Those units will have avariable cost of $22 per unit. The company will abo incur an additional $30.000 in annual fixed costs: Click bere to view the factor table (a) Caloulate the net pretent value ot the proposed equipment purchase. Assume that Eridgeport wies a 10 wi fivicount rate. For Net precent value is
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