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Chad's Chocolates is considering the purchase of a new candy press. The machine under consideration...

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Accounting

Chad's Chocolates is considering the purchase of a new candy press. The machine under consideration costs $17,550 and would generate $2,650 in annual savings of direct labor costs over its 20-year life. At the end of 20 years, the press could be sold for $500. Chad's required rate of return is 16%. What is the machine's net present value?

(a) $1,813 (b) $(1,813) (c) $(1,839) (d) $(1,339)

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