What is the machine net present value

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Question - Chad's Chocolates is considering the purchase of a new candy press. The machine under consideration costs $17,550 and would generate $2,650 in annual savings of direct labor costs over its 20-year life. At the end of 20 years, the press could be sold for $500. Chad's required rate of return is 16%. What is the machine's net present value?

(a) $1,813

(b) $(1,813)

(c) $(1,839)

(d) $(1,339)

Reference no: EM131967040

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