ABC Company is interested in buying a piece of equipment for $150,000. The average useful life...
ABC Company is interested in buying a piece of equipment for $150,000. The average useful life of the equipment is anticipated to be five years, with projected annual cash flow of $22,000. Calculate the net present value of the equipment at 8%. Assume no salvage value.
Please explain the formula as well-I come up with a different answer when I do the formula of $22,000/(1+8%)*2=$40, 740.74; someone else says the answer is $18,861.45
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ABC Company is interested in buying a piece of equipment for
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