What is the machine net present value

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Reference no: EM133114712

Question - Oriole Manufacturing is considering the purchase of a new sewing machine that costs $16000. The machine, because of its efficiency, will save about $3520 in cost each year. The machine is expected to have a salvage value of $2640 and a life of 6 years. Oriole's required rate of return is 12%.

Using the present value tables, what is the machine's net present value?

a) $21120

b) $13360

c) $1337

d) $-191

Reference no: EM133114712

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