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(Ignore income taxes in this problem.) Tangen Corporation is considering the purchase of a machine that would cost $380,000 and would last for 6 years.
(Ignore income taxes in this problem.) Tangen Corporation is considering the purchase of a machine that would cost $380,000 and would last for 6 years. At the end of 6 years, the machine would have a salvage value of $80,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $104,000. The company requires a minimum pretax return of 14% on all investment projects. The net present value of the proposed project is closest to:
$24,456
$133,753
$104,456
$60,936
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