Problem associated to minimum pretax return

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

Questions Cloud

Write equations for the reaction : Write equations for the reaction of each of the following with (1) Mg in ether followed by (2) additione of D2O to the resulting solution:

Sign of correlation coefficient to correlate two variables : What would happen to the size and the sign of the correlation coefficient if we correlated these two variables? How can researchers work around this issue?

Center of mass of lamina : Find the center of mass of the lamina bounded by y = x^2 and y=2x and the density is ?(x,y) = xy.

Subtraction rule : When you subtract one number from another, the answer is always less than both of the numbers in the subtraction problem. Support or disprove this statement with examples.

Problem associated to minimum pretax return : The company requires a minimum pretax return of 15% on all investment projects. The net present value of the proposed project is closest to:

What mass of p4 is produced : What mass of P4 is produced when 41.5 g of Ca3(PO4)2, 26.5 g of SiO2 and 7.80 g of C are reacted according to the equation: 2Ca3(PO4)2 + 6SiO2 + 10C ¼ P4 + 6CaSiO3 + 10C

Probability a randomly selected student commutes : 27% fall into both categories. What is the probability a randomly selected student commutes and does not participate in a student organization?

Amblyopia : It is very interesting that vision works both ways. Our vision works from eyes to brain as well as from brain to eyes. What I mean by this statement? Expectations change the vision. According to your expectation, your vision directs to one direction ..

Slope of tangent to curve : Determine the slope of the tangent to each of the following curves:

User Account

All Pages