What is the next present value of the project


Problem

The Wexler Company is considering the purchase of a new machine costing $250,000. This machine is estimated to cost $5,000 per year in operating expenses but it will allow the company to earn an additional $100,000 per year in revenues and at the end of 3 years the machine will have a salvage value of $40,000. If the required rate of return is 12% what is the next present value of this project?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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