(Ignore Income Taxes in This Problem

question 92

Multiple Choice

(Ignore income taxes in this problem.) The management of Lassonde Corporation is considering the purchase of a machine that would cost $290,000, would last for 9 years, and would have no salvage value. The machine would reduce labor and other costs by $56,000 per year. The company requires a minimum pretax return of 8% on all investment projects.
-The net present value of the proposed project is closest to:

• A) $59,832
• B) $119,604
• C) $214,000
• D) $107,053

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Definitions:

Income Received

The amount of money or monetary value received by an individual or entity in exchange for goods provided, services rendered or as a return on investments.

Middle Three Quintiles

The segments of the population that fall into the second, third, and fourth quintiles when dividing the total population into five equal groups based on income or wealth.

Income Received

It refers to the total amount of money obtained by individuals or entities typically through employment, investments, or other sources.

Upper Quintiles

Refers to the top 20% of a population in terms of income or wealth distribution.