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The management of Urbine Corporation is considering the purchase of a machine that would cost $320,000 would last for 5 years, and would have no
The management of Urbine Corporation is considering the purchase of a machine that would cost $320,000 would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $75 ,000 per year. The company requires a minimum pretax return of 12% on all investment projects. (Ignore income taxes in this problem.) The net present value of the proposed project is closest to:
$72 305 $9,625 $26,945 $49,626
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