The management of Opray Corporation is considering the purchase of a machine that would cost $360,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $78,000 per year. The company requires a minimum pretax return of 11% 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 net present value of the proposed project is closest to: Multiple Choice $15,646 $89,588 $7,536 $186,000

$7,536

Explanation:

As we know Net Present value is calculated by discounting each years cash flows using using the required rate of return.

Saving in labor and other costs per year = $78,000

Initial Investment = $360,000

Numbers of years = 7 years

Required rate of return = 11%

As the saving are constant each year, so we will use the present value of annuity formula to calculate the present value of the cost savings.

Present value of cost saving = $78,000 x ( 1 - ( 1 + 11% )^-7 ) / 11% = $78,000 x 4.712 = $367,536

Net Present Value = Present value of cost saving - initial Investment

Net Present Value = $367,536 + $360,000 = $7,536

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.

the third answer is correct.