21. The management of Douglass Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation:

Year	Income from Operations	Net Cash Flow
1	$18,750	$93,750
2	18,750	93,750
3	18,750	93,750
4	18,750	93,750
5	18,750	93,750

The net present value of this investment is:

a. Negative $118,145 c. Negative $19,875

b. Positive $118,145 d. Positive $19,875