What is the net present value of the proposed project

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Reference no: EM13133411

Almendarez Corporation is considering the purchase of a machine that would cost $320,000 and would last for 7 years. At the end of the 7 years, the machine would have a salvage value of $51,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $72,000. The company requires a minimum pretax return of 18% on all investment projects. What is the net present value of the proposed project?

Reference no: EM13133411

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