A $130,000 investment in new equipment this year will increase your fi

A $130,000 investment in new equipment this year will increase your firm’s profits by $50,000 in each of the next 3 years. What is the net present value of this investment if your firm’s opportunity cost of capital is 10 percent?

A) -5,657
B) 5,657
C) 124,343
D) 128,850

 

ANSWER

A

 

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