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pishuonlain [190]
3 years ago
12

Upper Darby Park Department is considering a new capital investment. The following information is available on the investment. T

he cost of the machine will be $150,000. The annual cost savings if the new machine is acquired will be $40,000. The machine will have a 5-year life, at which time the terminal disposal value is expected to be $20,000. Upper Darby Park Department is assuming no tax consequences. If Upper Darby Park Department has a cost of capital of 10%, which of the following is closest to the net present value of the project?
a. $1,632
b. $12,418
C. $14,060
d. $150,000
Business
1 answer:
Burka [1]3 years ago
3 0

Answer:

c.$14,060

Explanation:

I hope my answer is correct

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