Clairmont Corporation is considering the purchase of a machine that would cost $230,000 and would last for 6 years. At the end of 6 years, the machine would have a salvage value of $22,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $47,000. The company requires a minimum pretax return of 8% on all investment projects. (Ignore income taxes in this problem.)

Click here to viewExhibit 11B-1andExhibit 11B-2, to determine the appropriate discount factor(s) using tables.

The net present value of the proposed project is closest to:(Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

$(1,141)

$7,779

$52,000

$(14,206)