(Ignore Income Taxes in This Problem

question 36

Essay

(Ignore income taxes in this problem.)The management of Kinion Corporation is considering the purchase of a machine that would cost $170,000,would last for 4 years,and would have no salvage value.The machine would reduce labor and other costs by $60,000 per year.The company requires a minimum pretax return of 12% on all investment projects.
Required:
Determine the net present value of the project.Show your work!

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Definitions:

Commissioners

Officials or a group of officials in charge of a specific function or authority, often within a governmental or regulatory body.

Federal Trade Commission

A United States federal agency with the primary goal of protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

President

The elected head of a republic, serving as both head of state and government, or the chief executive officer of a corporation or organization.

Food And Drug Administration

A federal agency of the United States Department of Health and Human Services, responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, medical devices, and veterinary products.