25. A firm is considering the purchase of a $300,000 machine for its business. The machine is expected to increase sales by $230,000. The machine will have a 5 year useful life and will be depreciated over 5 years via the straight line method. There is no salvage value. The firm has a required rate of return of 10% for all new capital investments. The project's annual pro forma income statement for the next 5 years is shown below:

Sales $230,000

Total Costs 137,000

Depreciation 60,000

____________

Earnings before Taxes $33,000

Taxes 11,220

_____________

Net Income $21,780

The firm should:

Group of answer choices

Accept the project because the NPV is positive $2,543

Accept the project because the NPV is positive $10,011

Reject the project because the NPV is negative $174,905

Reject the project because the NPV is negative $217,437

It doesnt matter since the NPV = 0

Cant tell because there isnt enough information