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Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and no salvage value. The machine will
Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and no salvage value. The machine will lower operating costs by $17,000 per year. The companys required rate of return is 18%. What is the net present value of this investment?
A.$3,159
B. $3,896
C.$3,796
D.$3,359
(Also 3,796 is not correct, I already tried with my first attempt, option 3,796 is not correct)
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