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A company is considering the purchase of a machine for $10,000 that would reduce...

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Accounting

A company is considering the purchase of a machine for $10,000 that would reduce operating costs by $4,000 per year for 10 years. The machine wil have ro scrap value (residual) life. The companys required rate of return is 12%
What is the net present value of the investment in the machine? (Select the answer that is closest to your calculations)
A) $30,000
B) $12,600
C) $32,598
D) $22,600

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