Newport Corp

question 68

Multiple Choice

Newport Corp.is considering the purchase of a new piece of equipment.The cost savings from the equipment would result in an annual increase in cash flow of $200,000.The equipment will have an initial cost of $900,000 and have a 6-year life.There is no salvage value for the equipment.If the hurdle rate is 8%,what is the approximate net present value? Ignore income taxes.(Future Value of $1,Present Value of $1,Future Value Annuity of $1,Present Value Annuity of $1. ) (Use appropriate factor from the PV tables.Round your final answer to the nearest dollar amount. )

• A)$924,580
• B)$24,580
• C)$900,000
• D)$300,000

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Definitions:

Blood Flow

The movement of blood through the circulatory system, delivering oxygen and nutrients to the body and removing waste products.

Aortic Arch

The curved portion of the aorta between its ascending and descending parts, giving rise to branches that supply the head, neck, and upper limbs with blood.

Thrombus

A blood clot that forms in a blood vessel, potentially obstructing the flow of blood through the circulatory system.

Blood Flow

The continuous movement of blood through the circulatory system, delivering nutrients and oxygen to and removing wastes from cells and tissues.