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(Present Value Tables Are Required

Question 135

Multiple Choice

(Present value tables are required. ) Westin Manufacturing is considering the purchase of a new machine to use in its packing department.The new machine will have an initial cost of $170,000,a useful life of 12 years and a $10,000 residual value.Westin will realize $15,750 in annual savings for each of the machine's 12-year useful life.Given Westin's 4% required rate of return,the new machine will have a net present value (NPV) of


A) ($28,436) .
B) ($15,936) .
C) ($154,064) .
D) ($22,186) .

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