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pinkkurage pinkkurage
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9 months ago

Almendarez Corporation is considering the purchase of a machine that would cost $320,000 and would last for 7 years. At the end of 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. (Ignore income taxes.)

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

The present value of the annual cost savings of $72,000 is closest to:



▸ $22,608

▸ $874,298

▸ $504,000

▸ $274,464
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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qwasqwas1qwasqwas1
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9 months ago
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pinkkurage Author
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9 months ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
paulinaibarra98
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Yesterday
Thanks for your help!!
lipop
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2 hours ago
Thanks
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