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The management of Penfold Corporation is considering the purchase of a machine that would cost $370,000, would last for 5 years, and would have no
The management of Penfold Corporation is considering the purchase of a machine that would cost $370,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $90,000 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.):
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