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Unformatted text preview: NPV = $358,678.98 - $320,000 = $38,678.98 Since the NPV is positive, the equipment can be purchased. The NPV calculation uses the cash flows. Since the cash flows are already provided, the depreciation amount and the tax rate are not relevant for the calculation....
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This note was uploaded on 02/14/2010 for the course FIN BUSN 379 taught by Professor Jgornto during the Spring '10 term at DeVry Ft. Washington.
- Spring '10