Problem associated to minimum pretax return

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Reference no: EM13127854

The management of Rousseau Corporation is considering the purchase of a machine that would cost $340,000, would last for 8 years, and would have no salvage value. The machine would reduce labor and other costs by $67,000 per year. The company requires a minimum pretax return of 15% on all investment projects. The net present value of the proposed project is closest to:

A. $196,000

B. -$120,437

C. -$39,371

D. $64,073

Reference no: EM13127854

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