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Question 7 (1.33 points) (Ignore income taxes in this problem.) Orangen Operations is considering the purchase of a machine that would cost $380,000 and would
Question 7 (1.33 points) (Ignore income taxes in this problem.) Orangen Operations 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: OA) $133,753 OC) $104,456 OD) $24,456 Page 7 of 30 Previous Page Next Page
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