Below is your estimated cash flows from the proposed acquisition of a new milling machine,

At t = 0, Net cash flow = $967,500

Operating cash flows:

OCF₁ = $365,000

OCF₂ = $437,000

OCF₃ = $392,200

OCF₄ = $365,320

OCF₅ = $365,320

At the end of the project (t = 5), Net cash flow = $57,600

If your cost of capital is 9%, Should the machine be purchased based on cash flows you estimate above?

	A.	No. Because IRR is 30.82%
	B.	Yes. Because NPV is $599,220.72
	C.	No. Because NPV is $599,220.72
	D.	Yes. Because IRR is 5.82%