(Ignore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of a machine that would cost $330,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $110,000 per year. The company requires a minimum pretax return of 12% on all investment projects.

The net present value of the proposed project is closest to:

a. $103,417

b. $362,000

c. $66,550

d. $194,000