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please help asap!!! Joanette, Incorporated, is considering the purchase of a machine that would cost $660,000 and would last for 9 years, at the end
please help asap!!!
Joanette, Incorporated, is considering the purchase of a machine that would cost $660,000 and would last for 9 years, at the end of which, the machine would have a salvage value of $56,000. The machine would reduce labor and other costs by $116,000 per year. Additional working capital of $2,000 would be needed immediately, all of which would be recovered at the end of 9 years. The company requires a minimum pretax return of 12% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using the tables provided. Required: Determine the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.) Step by Step Solution
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