Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

The management of Penfold Corporation is considering the purchase of a machine that would cost $360,000, would last for 10 years, and would have no salvage value. The machine would reduce labor and other costs by $50,000 per year. The company requires a minimum pretax return of 9% on all investment projects. Click here to view Exhibit 12B-1 and Exhibit 12B-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.):

Sagot :

Answer:

the  net present value is -$72,050

Explanation:

The computation of the net present value is shown below

= $50,000  per year ×PVIFA factor at 10 years for 9% - $360,000

= $50,000 ×5.7590  - $360,000

= $287,950 - $360,000

= -$72,050

hence, the  net present value is -$72,050

So the same should be relevant and considered too

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.