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Difend Cleaners has been considering the purchase of an industrial dry-cleaning machine. The existing machine is operable for three more years and will have a

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Difend Cleaners has been considering the purchase of an industrial dry-cleaning machine. The existing machine is operable for three more years and will have a zero disposal price. If the machine is disposed now, it may be sold for $200,000. The new machine will cost $430,000 and an additional cash investment in working capital of $100.000 will be required. The new machine will reduce the average amount of time required to wash clothing and will decrease labor costs. The investment is expected to net $200,000 in additional cash intlows dunng the first year of acquisition and $3400CC each additional year of use the new machine has a three-year lite, and zero disposal value. These cash flows will generally occur throughout the year and are recognized at the end of each year. Income taxes are not considered in this problem. The working capital investment will not be recovered at the end of the asset's life. What is the net present value of the investment assuming the required rate of return is 8%? Would the company want to purchase the new machine? O A $(416,540), no OB. $269,960 no OC. $416540: yes OD. $(269,960): yes

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