Sun Company Is Considering Purchasing New Equipment Costing $350,000 Using the Factors in the Table Below, Please Calculate the Management
Sun Company is considering purchasing new equipment costing $350,000. Sun's management has estimated that the equipment will generate cash inflows as follows:
Using the factors in the table below, please calculate the net present value of the investment project (including initial investment plus the NPV of the net cash inflows above) using a discount rate of 10%. Please round all calculations to the nearest whole dollar.
A) $41,667.
B) $49,325
C) $41,667
D) $39,761
Correct Answer:
Verified
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