22.Almendarez Corporation is considering the purchase of a machine that would cost $150,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $17,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $42,000. The company requires a minimum pretax return of 7% on all investment projects. (Ignore income taxes.) Additional informtion:

PV of $1 7%, 4 years .763; PV of annuity 7%, 4 years 3.387.

The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Multiple Choice

• $5,005

• $(5,050)

• $(4,775)

• $5,225