Solved: What is the equipments net present value, Financial Management

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What is the equipments net present value

Assignment:

A piece of equipment has a cost of $20,000. The equipment will provide cost savings of $3,500 each year for ten years, after which time it will have a salvage value of $2,500. If the company's discount rate is 12%, the equipment's net present value is:

A. $580

B. $(225)

C. $17,500

D. $2,275

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