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Build Corporation wants to purchase a new machine for $294,000. Management predicts that the machine can produce sales of $203,000 each year for the next

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Build Corporation wants to purchase a new machine for $294,000. Management predicts that the machine can produce sales of $203,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor and factory overhead (excluding depreciation) totaling $68,000 per year. The firm uses straight-line depreciation with no residual value for all depreciable assets Bulld's combined income tax rate is 20% Management requires a minimum after-tax rate of return of 10% on all Investments What is the net present value (NPV) of the Investment, rounded to the nearest whole dollar? (The PV annuity factor for 5 years, 10% IS 3.791) Assume that the cash Intlows occur at year-end. Multiple Choice ($366,554) $160,010, $205,502 $250.994 None of these

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