21. The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for one through five years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Year Income from Operations 1 $100,000 2 80,000 3 4 5 50,000 10,000 10,000 Net Cash Flow $200,000 170,000 130,000 80,000 80,000 The present value index for this investment is a. 1.30 b. 0.95 c. 1.05 d. 0.70