Jackson Company invests in a new piece of equipment costing $40,000. The equipment is expected to yield the following amounts per year for the equipment's four-year useful life:
Cash revenues $ 60,000
Cash expenses (32,000)
Depreciation expenses (straight-line) (10,000)
Income provided from equipment $ 18,000
Cost of capital 14%
What is the net present value of this investment in equipment, assuming no taxes are paid?
2 answers
- Whoa an iPhone app would be AWESOME!!! I tried to sign up too but they still aren't ready yet and are sending the $25 gift cards still, which is very nice of them!
it is currently not albviaale and they will notify me when information is albviaale. (Meanwhile, they'll send me an American Express gift card for $25 thanking me for my interest.)Just thought I'd let you know!