Management of glove would like to purchase

Reference no: EM133671137

Question

The management of glove would like to purchase a specialized production machine for $220,000. The machine is excited to last 3 years, with a salvage value of $55,000. Annual maintenance cost will total $30,000, and annual labor and material savings are predicted to be $140,000. The company's required rate of return is 15%. Find the NPV value of this investment.

Reference no: EM133671137

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