A new asset is expected to provide service over the next four years. It will cost $500,000, generates annual cash inflows of $150,000, and requires cash operating expenses of $30,000 each year. In addition, a $10,000 overhaul will be needed in year 3. If the company requires a 10% rate of return, the net present value of this machine would be:
a) $(127, 110), and the machine meets the company's rate-of-return requirement.
b) $(127, 110), and the machine does not meet the company's rate-of-return requirement.
c) $(129, 600), and the machine does not meet the company's rate-of-return requirement.
d) $(151, 700), and the machine meets the company's rate-of-return requirement. None of the other answers are correct.