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Briarwood Enterprises is considering the purchase of some new equipment that will cost the company $151,800. The equipment is estimated to have a 6 year life and no salvage value. The equipment is expected to generate $34,000 of cash inflows each year over the life of the asset. Briarwood's cost of capital is 10%.
-Ignoring income taxes,the net-present-value of the investment in the equipment is:

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Briarwood Enterprises is considering the purchase of some new equipment that will cost the company $151,800. The equipment is estimated to have a 6 year life and no salvage value. The equipment is expected to generate $34,000 of cash inflows each year over the life of the asset. Briarwood's cost of capital is 10%.
-Ignoring income taxes,the net-present-value of the investment in the equipment is:

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The net present value (NPV) is calculated by discounting the cash inflows at the cost of capital and subtracting the initial investment. The NPV is negative, indicating that the investment does not meet the required rate of return.

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