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DON Corporation is contemplating the purchase of a machine that will produce net after-tax cash...

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Finance

DON Corporation is contemplating the purchase of a machine that will produce net after-tax cash savings of $20,000 per year for 5 years. At the end of five years, the machine can be sold to realize after-tax cash flows of $6,000. Assuming a 12% discount rate, calculate the total present value of the annual cash savings and the salvage value of the machine.

(FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided. Round final answer to the nearest whole dollar.)

What is the total present value?

Total present value =

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