45. 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 1 through 5 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		Net Cash Flow
1	$100,000		$200,000
2	80,000		170,000
3	50,000		130,000
4	10,000		80,000
5	10,000		80,000

The net present value for this investment is:

a.negative $150,000.

b.positive $24,170.

c.negative $24,170.

d.positive $150,000.

49. Diamond Inc.'s sales is $520,000, its operating income is $84,000, average total assets are $480,000, and average shareholders' equity is $200,000. Determine the company's return on shareholders' equity.

a.42.0%

b.22.6%

c.55.2%

d.36.5%