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The Johnson Research Organization, a nonprofit organization that does not pay taxes, is considering buying laboratory equipme

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Answer #1
Year Cash Flow Present Value of Cash Flow
0 -6940000 -6940000
1 1590000 1472222
2 1590000 1363169
3 1590000 1262193
4 1590000 1168697
5 1590000 1082127
6 1590000 1001970
7 1590000 927750
7 590000 344259
NPV $1682388

Net Present Value of the Decision $1682388

Yes Organization should buy the equipment because it is giving a positive NPV and good Income.

I hope this clear your doubt.

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