Clairmont Corporation is considering the purchase of a machine that would cost $110,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $16,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $30,000. The company requires a minimum pretax return of 12% on all investment projects. (Ignore income taxes in this problem.)

Clairmont Corporation is considering the purchase of a machine that would cost $110,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $16,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $30,000. The company requires a minimum pretax return of 12% 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.)

$(8,714)

$17,634

$10,000

$(24,061)

0.790 0711 0605 062) 0580 0A7 0.51) 0482 0452 040.400 0376 0104 0.333 0394 0296 0279 D2O 0249 0216222 0.210 0.145 0.130 0.196 0101 000) 1264 0 0534 e.458 0X40.)e 0292 6251 0248 010.163 6541 0.129 6507 0000 6 1 0.07, 0162 0064 6167 0.042 0006 0.032 6829 0513 0.4 0.37 0.3.7 0279 0291 0998 0 70 0146 0925 0.,O8 0D03 0.080 0 17 006 0045 0 0004 0000 0006 0 017 0814 15 0176 014 0124 01067 0.3 061 005 6543 0037 91 0.006822 00s 16 004 6812 21 0479 0.35e 0264 0262 0199 0NM0.935 0112 0 0877 0014 6053 0044 0.007 0008 0106 0022 0166 0015 0643 001, 0 015 0043 112 0001 004 0.390 0310 0013 0181 01 17 001 031 1 0174 0208 042 0.067 007 0045 02 0.002 05 0011 0 0.006 004 0.000 000.00 001 0.00 00 0.000 00 0.000 00