What is the machinery salvage value

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Question - Super Manufacturing is considering the purchase of a new piece of machinery. The machinery requires an initial investment of $78,000 and is expected to produce net annual cash flows of $19,000 for the next six years. In terms of intangible benefits, Super estimates the machinery will save the company $2,500 each year in labor costs. If the project's estimated NPV is $32,475 and Super is using a discount rate of 7%, then what is the machinery's salvage value (the PV of an annuity at 7% for 6 periods = 4.7665; the PV of 1 at 7% for 6 periods = .6663)

Reference no: EM131756389

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