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Michael Scott Paper, Inc. is considering a new machine that requires an initial investment of $ 6 5 0 , 0 0 0 , including

Michael Scott Paper, Inc. is considering a new machine that requires an initial investment of $650,000, including installation costs, and has a useful life of ten years. The expected annual after-tax cash flows for the machine are $90,000 during the first two years, $115,000 during years three through six, and $85,000 during the remaining years of its useful life. What is the net present value (NPV) when the discount rate is 5%?
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$112,132.97
$189,746.24
$106,793.30
$122,614.62

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