(Ignore Income Taxes in This Problem

question 91

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:

Canadian Dollar

The official currency of Canada, often represented by the symbol CAD or C$.

Translation Gain

Profit or gain recognized from converting foreign currency transactions into the functional currency of a business during the consolidation of financial statements.

Direct Quote

An international exchange rate specified as the native currency per foreign currency unit.

Japanese Yen

The official currency of Japan, known in the financial and currency worlds by its code, JPY.