Question
(Ignore income taxes in this problem.) Sibble Corporation is considering the purchase of a machine that would cost $330,000 and would last for 5 years.
(Ignore income taxes in this problem.) Sibble Corporation is considering the purchase of a machine that would cost $330,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $50,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $76,000. The company requires a minimum pretax return of 12% on all investment projects. The net present value of the proposed project is closest to: (Round your 'PV factors' to three decimal places.) (Use Exhibit11B-1 and Exhibit11B-2) rev: 12_14_2012, 06_18_2014_QC_50436
-$56,020 | |
-$6,020 | |
-$43,092 | |
-$27,670 |
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