Woods Manufacturing is considering the purchase of a new sewing machine that costs $18,000.The machine,because of its efficiency,will save about $4,000 in cost each year.The machine is expected to have a salvage value of $3,000 and a life of 6 years.Woods' required rate of return is 12%.What is the machine's net present value?
A) $34
B) $1,520
C) $15,000
D) $24,000
Correct Answer:
Verified
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