(Ignore Income Taxes in This Problem

question 109

Multiple Choice

(Ignore income taxes in this problem.) The management of Opray Corporation is considering the purchase of a machine that would cost $360,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $78,000 per year. The company requires a minimum pretax return of 11% on all investment projects.
-The present value of the annual cost savings of $78,000 is closest to:

• A) $763,064
• B) $177,027
• C) $546,000
• D) $367,536

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A small, sensitive, erectile part of the female genitals, important for sexual arousal and pleasure.

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