Connor company is considering the purchase of new equipment for $90000. The ex

Connor company is considering the purchase of new equipment for $90000. The expected life of the equipment is 5 years with no residual value. The equipment is
expected to earn revenues of $114000 per year. Total expenses including depreciation are expected to be $90000 per year. Connor management has set a
minimum acceptable rate of return of 15%. Assume straight-line depreciation.

Calculate the net present value of the new equipment using the present value of an annuity of $1 table. Round to the nearest dollar.

Annual net cash flow: $42000

Present value of equipment cash flows:

Less equipment costs: $90000

Net present value of equipment: