The management of Penfold Corporation is considering the purchase of a machine that would cost...
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Accounting
The management of Penfold Corporation is considering the purchase of a machine that would cost $390,000, would last for 7 years, and would have no salvage value.
The machine would reduce labor and other costs by $74,000 per year. The company requires a minimum pretax return of 12% on all investment projects. Click here to view Exhibit 14B-1 and Exhibit 14B-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.): Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
O A) $(52,264)
O B) $(2,264)
O C) $(74,864)
O D) $(29,664)
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