Quad Company is considering buying new equipment costing $450,000 to update its tailgating business. Management anticipates that the machine will produce cash sales of $237,000 each year over the next five years. Annual cash expenses are projected to be $85,000. Quad plans to use straight-line depreciation with a residual (salvage) value of $63,000. Quad's combined income tax rate is 30%. Determine the net present value for the investment. Assume straight-line depreciation is used; and Quad's management has set a 14% hurdle rate on similar investments. Present value of $1, 14%, five periods = 0.519 Present value of an annuity of $1, 14%, five periods = 3.433 A ($55,465) B ($5,015) :C $27,716 D $477,682 Select one