(Present Value Tables Are Required

question 118

Multiple Choice

(Present value tables are required. ) Karpets Industries is investing in a new high-speed loom for weaving its rugs and carpets.The new loom will have a useful life of 7 years and cost $80,000.The loom's residual value is $5,000.Assume that Karpets requires a return of 10% and that the loom will create annual cost savings of $16,250.What is the net present value (NPV) of the new loom?

• A)$1,670
• B)($3,460)
• C)$81,670
• D)($895)

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Definitions:

Core Features

The essential or most important characteristics that define a particular entity, concept, or system.

Mixed Farming

An agricultural approach that involves the raising of both crops and livestock on the same farm area.

Silent Trade

A method of trading where goods are exchanged without direct communication between the traders, often used in history to trade across cultural boundaries.

Adversarial Groups

Organizations or collectives that are in opposition to one another, typically within a context of conflict or competition.