A Small Paper Producer Is Considering the Purchase of a New

Multiple Choice

A small paper producer is considering the purchase of a new machine to add to their assembly line. This machine would afford them the opportunity to increase their production by 15%. They are currently gathering pricing information from vendors and are trying to figure out what they would want to invest. They have gathered the following information: If the company has a Required Rate of Return of 6.3%, then what is the amount they would want to spend on the new machine?

A) $84.55
B) $1,400.00
C) $8,560.00
D) $20,380.95