Karpets Industries is investing in a new high-speed loom for weaving its rugs and carpets. The new loom will have a useful life of 6 years and cost $70,000. The loom's residual value is $5000. Assume that Karpets requires a return of 10% and that the loom will create annual cost savings of $17,450. What is the net present value (NPV)of the new loom? (Round any intermediary calculations and your final answer to the nearest dollar.) Present Value of $1
Present Value of Annuity of $1

Question

Karpets Industries is investing in a new high-speed loom for weaving its rugs and carpets. The new loom will have a useful life of 6 years and cost $70,000. The loom's residual value is $5000. Assume that Karpets requires a return of 10% and that the loom will create annual cost savings of $17,450. What is the net present value (NPV)of the new loom? (Round any intermediary calculations and your final answer to the nearest dollar.) Present Value of $1
 Present Value of Annuity of $1

Quizplus · Accepted Answer

The Answer of Karpets Industries is investing in a new high-speed loom for weaving its rugs and carpets. The new loom will have a useful life of 6 years and cost $70,000. The loom's residual value is $5000. Assume that Karpets requires a return of 10% and that the loom will create annual cost savings of $17,450. What is the net present value (NPV)of the new loom? (Round any intermediary calculations and your final answer to the nearest dollar.) Present Value of $1
 Present Value of Annuity of $1

Karpets Industries Is Investing in a New High-Speed Loom for Weaving