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Almendarez Corporation is considering the purchase of a machine that would cost $140,000 and would last for 5 years. At the end of 5 years,
Almendarez Corporation is considering the purchase of a machine that would cost $140,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $18,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $30,000. The company requires a minimum pretax return of 7% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-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 intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $13,086 $(4,166) $(10,000) $(19,513)
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