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:

$(13,600).

$86,400.

$186,400.

$292,700.

$465,500.

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