Use the information below to answer the following question(s) .
Sommer Corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $410,000. Projected net cash inflows from the equipment are as follows:
Sommer Corporation's hurdle rate is 12%. Assume the residual value is zero.
-The net present value of the Sommer Corporation equipment is closest to
A) $(13,810) .
B) $2,302.
C) $13,810.
D) $15,000.
Correct Answer:
Verified
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