What is the NPV of an equipment investment that costs $150,000
and returns $80,000 in the first year but then declines by 8%/year
with the final cash flow coming in year 5? Also assume a discount
rate of 9.4% and that the equipment can be sold for $45,000 at the
end of the fifth year.
$250,000
$266,400
$116,400
$190,900
$145,100