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...

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)