# Finance

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Cooper construction is considering purchasing new technologically advanced equipment. The equipment will cost \$625,000 with a salvage value \$50,000 and the end of 10 years. The equipment is expected to general additional annual cash inflows with the following probabilities for the next 10 yrs; Probabililty Cash Flow
.15 \$60,000
.25 \$85,000
.45 \$110,000
.15 \$130,000
What is expected Cash flow I got \$99,250. Cost of Capital 10%, what is expected net present value? My question is do I multiple \$625,000 by present values of .909, .826 .751 each by \$625,000 or will this value change?

• Finance -

99250

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