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

At t = 0, Net cash flow = $500,000

Operating cash flows:

OCF₁ = $100,000

OCF₂ = $120,000

OCF₃ = $140,000

OCF₄ = $160,000

OCF₅ = $160,000

At the end of the project (t = 5), ternimal cash flow = $30,500 after taking into account all CFs (e.g., change in NWC, salvage value, taxes, etc.)

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

	A.	Yes. Because NPV is $38,010.
	B.	Yes. Because NPV is $48,010.
	C.	Yes. Because NPV is $28,010.
	D.	Yes. Because NPV is $18,010.