Now if you reduce the profit for the first of the ten years (year one...
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Now if you reduce the profit for the first of the ten years (year one only) by the sunk cost or loss incurred by selling the equipment for $30,000..but then the other 9 years you would still have a $60,000 profit per year...The sunk cost or loss for that first year would equal the salvage value of the old equipment minus $30,000. This amount would then be subtracted from the first year profit of $60,000. The remaining 9 years would still be $60,000 per year. In this case, what would the NPV now be? Select one: a. -47,889 b. -41,458 c. -45,267 d. 354.733
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