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Clairmont Corporation Is Considering the Purchase of a Machine That

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Clairmont Corporation is considering the purchase of a machine that would cost $150,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $18,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $37,000. The company requires a minimum pretax return of 12% on all investment projects. The present value of the annual cost savings of $37,000 is closest to:

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Definitions:

UWB

Ultra-Wideband, a wireless communication protocol that uses a very low energy level for short-range, high-bandwidth communications over a large portion of the radio spectrum.

NFC

Near Field Communication (NFC) is a set of communication protocols that allow two electronic devices, one of which is usually a portable device such as a smartphone, to establish communication by bringing them within a few centimeters of each other.

Short-Range Wireless

Wireless communication technologies designed for short distances, such as Wi-Fi, Bluetooth, and NFC, typically used in consumer electronics for connecting devices.

Mobile Wallets

Digital versions of traditional wallets that someone can have on their mobile devices, allowing them to carry out electronic transactions.

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