Connor Company is considering the purchase of new equipment for $182000. The e

Connor Company is considering the purchase of new equipment for $182000. The expected life of the equipment is 7 years with no residual value. The equipment
is expected to earn revenues of $157000 per year. Total expenses including depreciation are expected to be $130000 per year. Connor management has set a
minimum acceptable rate of return of 12%. Assume straight-line depreciation.

a. Determine the equal annual net cash flows from operating the equipment. Round to the nearest dollar.
$

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

c. Does your analysis support the purchase of the new equipment?
SelectYesNoItem 6

I am looking for assistance with finding the equal annual cash flows from operating expenses.

I also need assistance with finding the annual net cash flow; present value of equipment cash flows; & net present value of
equipment.

Please show all work.