Barbeau Corporation's management is considering investing in (i.e., purchasing) a new machine costing $490,000. Management'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 about the income and cash flows that would be produced by the machine in determining the acceptability of this purchase: Income from Net Cash Flow $180,000 $40,000 $120,000 $20,000 $100,000 $10,000 $90,000 $40,000 $120,000 Year Operations 1 $100,000 2345 The net present value for this investment is: O negative $319,370 O positive $473,830 positive $36,400 positive $28,290 negative $16,170

Barbeau Corporation's management is considering investing in (i.e., purchasing) a new machine costing $490,000. Management's desired rate of retum is 10;6. The preserk valie 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 foreqoine intormation, use the following data about the income and cash flows that would be produced by the machine in determining the acceptablity of this purchase: The net present value for this investment is: negative $319,370 positive $473,830 positive $36,400 positive $28,290 negative $16,170