Gene, Inc., invested in a machine with a useful life of six years and no salvage value

Question:

Gene, Inc., invested in a machine with a useful life of six years and no . It depreciated the machine using the straight-line method; the machine was expected to produce a $20,000 annual cash inflow from operations, after cash expenses but before taxes. Gene has determined that the time-adjusted rate of return (IRR) on the investment is 10 percent. The firm is in the 20 percent tax bracket. The appropriate factor for this situation is 4.355.

Required
What was the cost of the machine?
(CPA Adapted)

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