Chris Company has been offered a special-purpose metal cutting machine for $150,000. The machine is expected to have a useful life of 6 years, with no terminal disposal value. Savings in cash operating costs are estimated to be $35,000 per year. The companys tax rate is 11%. The company has a required real rate of return is 5 percent. The company uses the straight-line depreciation method.

The NPV is closest to:

MULTIPLE CHOICE:

a) $22,066

b) $21,015

c) $53,400

d) $64,339