6. 6:05 TB MC Qu. 14-55 (Algo) The management of Penfold Corporation... The management of Penfold Corporation is considering the purchase of a machine that would cost $310,000, would last for 6 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 12% on all investment projects. © Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.): (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice О $(63,340) $(8.349) B O $(91,225) < Prev 16 of 20 Next> MacBook Pro G Search or type URL
6. 6:05 TB MC Qu. 14-55 (Algo) The management of Penfold Corporation... The management of Penfold Corporation is considering the purchase of a machine that would cost $310,000, would last for 6 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 12% on all investment projects. © Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.): (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice О $(63,340) $(8.349) B O $(91,225) < Prev 16 of 20 Next> MacBook Pro G Search or type URL
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:6.
6:05
TB MC Qu. 14-55 (Algo) The management of Penfold Corporation...
The management of Penfold Corporation is considering the purchase of a machine that would cost $310,000, would last for 6 years, and would
have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of
12% on all investment projects.
© Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.
The net present value of the proposed project is closest to (Ignore income taxes.): (Round your intermediate calculations and final answer to the
nearest whole dollar amount.)
Multiple Choice
О
$(63,340)
$(8.349)
B
O
$(91,225)
< Prev
16 of 20
Next>
MacBook Pro
G Search or type URL
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