(Ignore income taxes in this problem) Clairmont Corporation is considering the purchase of a machine that would cost $150,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $18,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $37,000. The company requires a minimum pretax return of 12% on all investment projects.

The net present value of the proposed project is closest to:

($16,615)

$1,385

($6,409)

($11,295)

gnore income taxes in this problem ) Clairmont Corporation is considening the purchase of a machne that would cost $150,000 and would last for 5 years At the end of 5 years, the machine would have a salvage value of $18 000 By reducing labor and other operating costs, the machine would provide annual cost savings of $37,000 T r he company requires a minsmum pretax return of 12% on all investment projects The net present value of the proposed project is closest to O s1.38 (511296)