Net Present Value Method Example - Chapter 13 Clairmont Corporation is considering the nurchase of a machine that would cost $180,000 and would last for years. At the end of 7 years, the machine would have a salvage value of $25,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $31,000. The company requires a minimum pretax return of 8% on all investment projects. (Ignore income taxes in this problem.) Calculate the NPV. Should the company accept or reject the project