Reids Company, which uses net present value to analyze investments, requires a 10% minimum rate of return. A staff assistant recently calculated a $500,000 machine's net present value to be $86,400, excluding the impact of straight-line depreciation. If Reids ignores income taxes and the machine is expected to have a five-year service life, the correct net present value of the machine would be:

A. (%13,000)

b.$86,400

c.$186,400

d. $292,700

e.$465,500