Multiple Choice
The management of Mashiah Corporation is considering the purchase of a machine that would cost $290,000, would last for 6 years, and would have no salvage value. The machine would reduce labor and other costs by $102,000 per year. The company requires a minimum pretax return of 13% on all investment projects. The present value of the annual cost savings of $102,000 is closest to:
A) $849,012
B) $612,000
C) $195,872
D) $407,796
Correct Answer:
Verified
Correct Answer:
Verified
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