Leonardo Company is deciding whether to automate one phase of its production process. The equipment has a six year life and will cost $450,000. The interest rate is 12%. Net cash inflows per year:
Present Value of $1
Present Value of Annuity of $1
a. What is the present value of the net inflow for year 1?
b. What is the present value of the net inflow for year 5?
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