The management of Penfold Corporation is considering the purchase of a machine that would cost $300,000, would last for 6 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.

Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided.

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.)

Garrison 16e Rechecks 2017-12-15

Multiple Choice

• $(53,340)

• $(1,340)

• $(79,704)

• $(26,976)