The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 12% on all investment projects.

The net present value of the proposed project is closest to (Ignore income taxes.):(Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Multiple Choice

• $(53,700)
• $(11,700)
• $(77,514)
• $(29,886)