Door to Door Moving Company is considering purchasing new equipment that costs $730,000.Its management estimates that the equipment will generate cash flows as follows:

Present value of $1:

The company's annual required rate of return is 8%.Using the factors in the table,calculate the present value of the cash inflows.(Round all calculations to the nearest whole dollar. )

Question

Door to Door Moving Company is considering purchasing new equipment that costs $730,000.Its management estimates that the equipment will generate cash flows as follows:

Present value of $1:

The company's annual required rate of return is 8%.Using the factors in the table,calculate the present value of the cash inflows.(Round all calculations to the nearest whole dollar. )

Quizplus · Accepted Answer

D)Calculation of present value of cash inflows:
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Door to Door Moving Company Is Considering Purchasing New Equipment