(Ignore income taxes in this problem.) Tangen Corporation is considering the purchase of a machine that would cost $397,000 and would last for 6 years. At the end of 6 years, the machine would have a salvage value of $88,500. By reducing labor and other operating costs, the machine would provide annual cost savings of $105,700. The company requires a minimum pretax return of 14% on all investment projects. The net present value of the proposed project is closest to:

Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables.

a. $102,567

b. $14,067

c. $26,289

d. $54,423