Clairmont Corporation is considering the purchase of a machine that would cost $170,000 and would last for 7 years. At the end of 7 years, the machine would have a salvage value of $19,500. By reducing labor and other operating costs, the machine would provide annual cost savings of $32,000. The company requires a minimum pretax return of 11% on all investment projects. (Ignore income taxes in this problem.)

Click here to view Exhibit 11B-1 and Exhibit 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.)

rev: 07_11_2017_QC_CS-93358

$(9,817)

$18,737

$54,000

$(25,164)