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Please provide calculation. Costanza company is considering to buy a machine is as follows: Investment $300,000 Revenue $200,000 Variable costs $80,000 Fixed costs $50,000 (50%

Please provide calculation.

Costanza company is considering to buy a machine is as follows:

Investment

$300,000

Revenue

$200,000

Variable costs

$80,000

Fixed costs

$50,000 (50% is out of pocket cost)

Weighted average cost of capital

8%

Tax rate

40%

The machine is considered 10 year property for tax purposes. Salvage value at the end of year ten is expected to be $50,000. Assume cash flows occur at the end of the year. ( Round to the nearest dollar.)

From the given information, the net present value at the end of year four is:

a. 251,600

b. 235,800

c. 310,000

d. 143,500

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