Almendarez Corporation is considering the purchase of a machine that would cost $190,000 and would last for 10 years, At the end of 10 years, the machine would have a salvage value of $16,000. By reducing labor and other costs, the machine would provide annual cost savings of $32,000. The company requires a minimum pretax return of 13% on all Investment projects. (Ignore income taxes.) Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to: (Round your Intermedlate calculations and final answer to the nearest whole dollar amount.) Multiple Cholce S(1,648) $20,568 S(130.000) S(26,995) O O OO
Almendarez Corporation is considering the purchase of a machine that would cost $190,000 and would last for 10 years, At the end of 10 years, the machine would have a salvage value of $16,000. By reducing labor and other costs, the machine would provide annual cost savings of $32,000. The company requires a minimum pretax return of 13% on all Investment projects. (Ignore income taxes.) Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to: (Round your Intermedlate calculations and final answer to the nearest whole dollar amount.) Multiple Cholce S(1,648) $20,568 S(130.000) S(26,995) O O OO
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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12q-17
Transcribed Image Text:Almendarez Corporation is considering the purchase of a machine that would cost $190,000 and would last for 10 years, At the end of 10 years, the machine would have a savage value of $16,000. By reducing labor and other operating
costs, the machine would provide annual cost savings of $32,000. The company requires a minimum pretax return of 13% on all investment projects. (Ignore income taxes.)
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.
The net present value of the proposed project is closest to: (Round your Intermedlate calculations and final answer to the nearest whole dollar amount.)
Multiple Cholce
S(1,648)
$20,568
S(130,000)
S(26,995)
O O O O
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