Use the information below to answer the following question(s).Saturn Ltd.wants to automate one of its production processes.The new equipment will cost $180,000.In addition, Saturn will incur installation and testing costs of $5,000 and $8,500 respectively.The expected life of the equipment is 8 years and the salvage value of the equipment is estimated at $18,000.The annual cash savings are estimated at $32,000.The company uses straight-line depreciation and has a required rate of return of 14%.Ignore income taxes.
-What is the net present value for the investment Saturn Ltd.is considering?
A)$(45,056.36)
B)$(31,556.36)
C)$(25,246.29)
D)$(38,746.29)
E)$45,056.36

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The Answer of Use the information below to answer the following question(s).Saturn Ltd.wants to automate one of its production processes.The new equipment will cost $180,000.In addition, Saturn will incur installation and testing costs of $5,000 and $8,500 respectively.The expected life of the equipment is 8 years and the salvage value of the equipment is estimated at $18,000.The annual cash savings are estimated at $32,000.The company uses straight-line depreciation and has a required rate of return of 14%.Ignore income taxes.
-What is the net present value for the investment Saturn Ltd.is considering?
A)$(45,056.36)
B)$(31,556.36)
C)$(25,246.29)
D)$(38,746.29)
E)$45,056.36

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