What is the initial cost of the equipment


The Yates Company purchased a piece of equipment which is expected to have a useful life of 7 years with no salvage value at the end of the 7-year period. This equipment is expected to generate a cash inflow of $32,000 each year of its useful life. If this investment has an internal rate of return of 14%, then the initial cost of the equipment is?

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Accounting Basics: What is the initial cost of the equipment
Reference No:- TGS0700526

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