A print shop will be investing in a new piece of equipment costing $64,000. The equipment is expected to yield the following amounts per year for the equipments 4 year useful life (ignoring taxes $52,000 Cash revenues (26,000) Cash expenses 16,000) Depreciation Income provided from equipment 10,000 Cost of capital 10% What is the net present value of this investment in equipment, assuming no taxes are paid?

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A print shop will be investing in a new piece of equipment costing $64,000. The equipment is expected to yield the following amounts per year for the equipment’s 4 year useful life (ignoring taxes): What is the net present value of this investment in equipment, assuming no taxes are paid