Gull Inc. is considering the acquisition of equipment that costs $530,000 and has a useful life of 6 years with no salvage value.
January 8th, 2018
(Ignore income taxes in this problem.) Gull Inc. is considering the acquisition of equipment that costs $530,000 and has a useful life of 6 years with no salvage value. The incremental net cash flows that would be generated by the equipment are:Incremental netcash flowsYear 1$137,000 Year 2$187,000 Year 3$148,000 Year 4$157,000 Year 5$147,000 Year 6$127,000 Click here to view Exhibit 8B-1 to determine the appropriate discount factor(s) using tables.If the discount rate is 13%, the net present value of the investment is closest to: (Round your final answer to the nearest dollar amount.)