“Wilson Company is considering an investment in a machine costing $300,000. The machine has an estimated useful life of seven years at the end of which it will have a salvage value of $15,000. Anticipated yearly revenues associated with the machine amount to $250,000. Yearly costs amount to $150,000. Extra maintenance costs of $60,000 will be incurred at the end of the second and fourth years. 105. The present value of the $15,000 salvage value using a discount rate of 12% is: a. $15,000. b. $7,605. c. $6,780. d. $6,060.”,”3Present Value of Salvage Value: = 15000 x .452 = $6
780″