### Concept of net present value of the proposed project

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Banderas Corporation is considering the purchase of a machine that would cost \$330,000 and would last for 9 years. At the end of 9 years, the machine would have a salvage value of \$79,000. By reducing labor and other operating costs, the machine would provide annual cost savings of \$59,000. The company requires a minimum pretax return of 12% on all investment projects. The net present value of the proposed project is closest to:

A) \$12,871

B) \$63,352

C) -\$15,648

D) \$35,692

#### Questions Cloud

 Projects according to the profitability index : The present value of the cash inflows would be \$42,180 for Project O, \$53,900 for Project P, and \$91,910 for Project Q. Rank the projects according to the profitability index, from most profitable to least profitable. Calculate the number of moles of h2o produced : Calculate the number of moles of H2O that will be produced by the reaction of .530 moles of solid Al(OH)3 with excess aqueous HClO3 Perfect competition gives an optimal allocation of resource : Discuss, using examples and academic references, the statement that perfect competition gives an optimal allocation of resources but that the existence of scale economies may make perfect competition impossible. Preferred and common stock holders during of four years : Determine the dividends per share and total cash dividends paid to the preferred and common stock holders during each of the four years Concept of net present value of the proposed project : By reducing labor and other operating costs, the machine would provide annual cost savings of \$59,000. The company requires a minimum pretax return of 12% on all investment projects. The net present value of the proposed project is closest to: Find out the rate law and the value of k : Determine the rate law and the value of k for the following reaction using the data provided How many grams of gas are formed : When a 3.03x102 g strip of zinc is dropped into a large beaker containing excess hydrochloric acid, how many grams of gas are formed? Explain in urea both nitrogen atoms are found to be planar : In most amines, the nitrogen atom is hybridized, with a pyramidal structure and bond angles close to 109 . In urea, both nitrogen atoms are found to be planar Present value of the project : Upper Darby Park Department is assuming no tax consequences. If Upper Darby Park Department has a required rate of return of 10%, which of the following is closest to the present value of the project?

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