Clairmont Corporation is considering the purchase of a machine that would cost $210,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $21,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $45,000. The company requires a minimum pretax return of 7% 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.)

$(10,527)

$19,447

$15,000

$(25,874)