Almendarez Corporation is considering the purchase of a machine that would cost $210,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $21,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $45,000. The company requires a minimum pretax return of 7% on all investment projects. (Ignore income taxes.)

The net present value of the proposed project is closest to: 

A. $19,447

B. $(15,000)

C. $(25,874)

D. $(10,527)

Answer rating: 100% (QA)

ANS D 10527 Present Value Factor 1 1 r n Where r Minimum pretax ... View the full answer