Fabricating Solutions Is Looking at the Financials for a CNC

Multiple Choice

Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.

-Calculate the total net present value for the project using a discount rate of 14%.

A) $725,000.00
B) $328,947.37
C) $120,003.76
D) $845,003.76
E) Do not have enough information to compute