Net present value lakeside inc is considering replacing old


Net present value Lakeside, Inc., is considering replacing old production equipment with state of the art technology that will allow production cost savings of$10,000 per month. The new equipment will have a five year life and cost $450,000, with an estimated salvage value of $30,000. Lakeside's cost of capital is 10%.

Required:

Calculate the net present value of the new production equipment.

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