Multiple Choice
(Ignore income taxes in this problem.) The management of Opray Corporation is considering the purchase of a machine that would cost $360,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $78,000 per year. The company requires a minimum pretax return of 11% on all investment projects.
-The net present value of the proposed project is closest to:
A) $15,646
B) $89,588
C) $7,536
D) $186,000
Correct Answer:
Verified
Correct Answer:
Verified
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