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 20%.

A) $312,500.00
B) $28,291.65
C) $753,291.65
D) $725,000.00
E) Do not have enough information to compute