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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 $16,0 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)

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 $16,0 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)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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