Homework Answers
Net Present value = (Annual cost saving * PVAF) + (Salvage value * PVIF) - Cost of investment
PVAF (12%,5 years) = 3.6048
PVIF (12%, 5 years) = 0.5674
($18000 * 3.6048) + ($6000 * 0.5674) - $62000 = $6292
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