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 net present value of the proposed project is closest to:
A) $154,663
B) $322,000
C) $117,796
D) $245,246
Correct Answer:
Verified
Correct Answer:
Verified
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