(Ignore Income Taxes in This Problem

question 58

Multiple Choice

(Ignore income taxes in this problem. ) The management of Mashiah Corporation is considering the purchase of a machine that would cost $290, 000, would last for 6 years, and would have no salvage value.The machine would reduce labor and other costs by $102, 000 per year.The company requires a minimum pretax return of 13% on all investment projects. The net present value of the proposed project is closest to:

• A)$154, 663
• B)$322, 000
• C)$117, 796
• D)$245, 246

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Definitions:

Monthly Billing

A billing system where charges for services or goods are invoiced or billed on a monthly basis.

Computerized Billing

This pertains to the use of computer systems and software to manage billing processes, often automating many aspects of invoicing, tracking payments, and account management.

Monthly Billing

A billing system where charges for services or utilities are invoiced to customers on a monthly basis.

Computerized Billing

The use of digital systems to issue and manage invoices and billing for goods and services.