question archive Meharg Corporation is considering the purchase of a machine that would cost $120,000 and would last for 5 years
Meharg Corporation is considering the purchase of a machine that would cost $120,000 and would last for 5 years
Subject:BusinessPrice: Bought3
Meharg Corporation is considering the purchase of a machine that would cost $120,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $25,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $30,000. The company requires a minimum pretax return of 10% on all investment projects. The present value of the annual cost savings of $30,000 is closest to: Select one: 0 a. $18,630 0 b. $183,163 0 c. $150,000 0 d. $113,730
