The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation:
The net present value for this investment is:
A) Negative $118,145
B) Positive $118,145
C) Positive $19,875
D) Negative $19,875
Correct Answer:
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