21. The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total cost of $720,000. If these calculators are upgraded at a total cost of $160,000, they can be sold for a total of $220,000. As an alternative, the calculators can be sold in their present condition for $50,000.

What is the financial advantage (disadvantage) to the company from upgrading the calculators?

$720,000)

($60,000)

$10,000

$170,000

22. The following data pertain to an investment proposal (Ignore income taxes.):

Cost of the investment	$	40,000
Annual cost savings	$	11,000
Estimated salvage value	$	5,000
Life of the project		5	years
Discount rate		10	%

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 investment is closest to:

$4,806

$3,105

$1,701

$24,000