Paragas, Incorporated, is considering the purchase of a machine that would cost $370,000 and would last for 8 years. At the end

Question

3 years ago

7

Paragas, Incorporated, is considering the purchase of a machine that would cost $370,000 and would last for 8 years. At the end

of 8 years, the machine would have a salvage value of $52,000. The machine would reduce labor and other costs by $96,000 per year. Additional working capital of $4,000 would be needed immediately. All of this working capital would be recovered at the end of the life of the machine. The company requires a minimum pretax return of 19% on all investment projects.
The net present value of the proposed project is closest to: _____________
a. $9,584
b. $78,530
c. $22,532
d. $19,528

Business

1 answer:

NemiM [27] · Answer 1 · 2022-05-07T18:10:14+03:00

NemiM [27]3 years ago

4 0

Answer:

d

Explanation:

just trust my last few brain cells