Corporation decides to buy the new machine, the old machine can be sold for a salvage value of $$60,000$ immediately. The old machine would have no salvage value in five years from annual cash savings of $$300,000$

Assume that The Romania Corporation uses a discount rate of $12\%$ and is not subject to income taxes.

Click here to view Exhibit $7$B$-1$ and Exhibit $7$B$-2$; to determine the appropriate discount factor$($s$)$ using the tables provided.

The net present value of the project is closest to:

$$171,000$

$$136,400$

$$141,500$

$$560,000$