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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- Spring '10
- Finance, $320,000, $38,678.98, $358,678.98, Watsons Sporting Goods