Find the net present value of the proposed project

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Question - Your Corporation is considering the purchase of a machine that would cost $257,000 and would last for 6 years. The company would also need $18,000 of working capital. At the end of 6 years, the machine would have a salvage value of $50,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $44,000. The company requires a minimum pretax return of 5% on all investment projects. Find the net present value of the proposed project?

Reference no: EM132588515

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