Charlotte Industries is investing in a new high-speed loom for weaving its spider webs. The new loom will have a useful life of 7 years and cost $80,000. The loom's residual value is $5,000. Assume that Charlotte requires a return of 10% and that the loom will create an annual cost savings of $16,250. What is the net present value (NPV) of the new loom?<\/p>
Present Value of an Ordinary<\/strong><\/p> Period<\/u><\/strong><\/p> Present Value of$1 at 10%. <\/u>Annuity of $1 at10%<\/u><\/strong><\/p> 1. 0.909. 0.909<\/p> 2. 0.826. 1.736<\/p> 3. 0.751 2.487<\/p> 4. 0.683 3.170<\/p> 5 0.621 3.791<\/p> 6 0.564 4.355<\/p> 7 0.513 4.868<\/p> Group of answer choices<\/p> <\/p> a. ($895)<\/p> <\/p> b. $1,670<\/p> <\/p> c. ($3,460)<\/p> <\/p> d. $81,670<\/p>",
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