Byron Corp

question 126

Multiple Choice

Byron 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 $100,000.The equipment will have an initial cost of $400,000 and have a 5-year life.The salvage value of the equipment is estimated to be $75,000.If the hurdle rate is 10%,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)$25,648
• B)$100,000
• C)$175,000
• D)($20,291)

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Definitions:

Endo-ocular

Pertaining to within the eye.

Periocular

Relating to or situated around the eye.

Intraocular

Pertaining to within the eye, often used to describe pressures or devices placed inside the eye.

Extraocular

Referring to muscles, nerves, or movements outside the eyeball itself.