A company purchased the new machine. The cost of the new machine was $250000 end it has an estimated useful life of five years with an expected salvage value at the end of its useful life of $50,000. The company uses a straight line depreciation method. The new machine is expected to save $125,000 annually and operating costs. The companies tax rate is 40% and it uses 10% discount rate to evaluate capital expenditures. What is the NPV of the new machine?

select one:

a. $126031

b. $250000

c. $376031

d. $200000