Costanza company is considering to buy a machine is as follows:

Investment	$500,000
Revenue	$200,000
Variable costs	$80,000
Fixed costs	$50,000 (50% is out of pocket cost)
Weighted average cost of capital	8%
Tax rate	40%

The machine is considered 10 year property for tax purposes. Salvage value at the end of year ten is expected to be $50,000. Assume cash flows occur at the end of the year. ( Round to the nearest dollar.)

From the given information, the net present value at the end of year four is:

Please show the steps of calculation. Remember it is at end of year four.

a. 241,800

b. 251,600

c. 300,000

d. 252,500

Please show the steps of the calculation