A piece of equipment has a cost of $20,000.The equipment will provide cost savings of $3,500 each year for ten years,after which time it will have a salvage value of $2,500.If the company's discount rate is 12%,the equipment's net present value is?
A) ($225) .
B) $580.
C) $2,275.
D) $17,500.
Correct Answer:
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