corporation wants to purchase a new machine for $$300,000.$ Management requires a minimum after$$tax rate of return of $10\%$ on all investments. The firm uses straight$-$line depreciation with no residual value for all depreciable assets.

Management predicts that the machine can produce sales of $$200,000$ each year for the next $5$ years. Expenses are expected to include direct materials, direct labor, and factory overhead $($including depreciation$)$ totaling $$164\mathrm{.}000$ per year for net operating income of $$36,000.$ What is the net present value $($NV$)$ of the investment?

at $10\%$

# of$.$year

PV of $$1$

$1$

$0\mathrm{.}909$

$2$

$3$

$0\mathrm{.}826$

$0\mathrm{.}751$

$4$

$0\mathrm{.}683$

$5$

$0\mathrm{.}621$

$6$

$0\mathrm{.}564$

$7$

$0\mathrm{.}513$

$8$

$0\mathrm{.}467$

$9$

$0\mathrm{.}424$

$10$

$0\mathrm{.}386$

at $10\%$

PV of an annuity

$0\mathrm{.}909$

$1\mathrm{.}736$

$2\mathrm{.}487$

$3\mathrm{.}170$

$3\mathrm{.}791$

$4\mathrm{.}355$

$4\mathrm{.}868$

$5\mathrm{.}335$

$5\mathrm{.}759$

$6\mathrm{.}145$

O $-$$$363,936$

O $563,936$

O $$136,476$

$-$$$163,524$A corporation wants to purchase a new machine for $$300,000.$ Management requires a minimum after$-$tax rate of return

of $10\%$ on all investments. The firm uses straight$-$line depreciation with no residual value for all depreciable assets.

Managernent predicts that the machine can produce sales of $$200,000$ each year for the next $5$ years. Expenses are

expected to include direct materials, direct labor, and factory overhead $($including depreciation$)$ totaling $$164,000$ per

year for net operating income of $$36,000.$ What is the net present value $($NPV$)$ of the investment?

$-$$$363,936$

$$63,936$

$$136,476$

$-$$$163,524$