Derek's Coffee Shop is investigating the possibility of investing in new machines. Two local manufacturers are being considered. After-tax cash inflows for the two competing projects are as follows:

YearMachine AMachine B

1$300,000$ 50,000

2250,00050,000

3200,000 300,000

4100,000 400,000

550,000 450,000

Both projects require an initial investment of $500,000. In both cases, assume that the equipment has a life of five years with no salvage value

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1.A third option has surfaced for machinery purchased from an out-of-town supplier. The cost is also $500,000, but this machine will produce even cash flows over its five-year life. What must the annual cash flow be for this machine to be selected over the other two? Assume a 12 percent discount rate.