Rooney, Incorporated is considering the purchase of a new machine costing $600,000. The machine's useful life is expected to be 7 years with no salvage value. The straight-line depreciation method will be used. The net increase in annual after-tax cash flow is expected to be $152,000. Rooney estimates its cost of capital to be 15%. (The present value of a $1 annuity for 7 years at 15% is 4.160, and the present value of $1 to be received in 7 years is 0.376.) The net present value of the investment in the machine under consideration is: a. $152,000. b. $85,714. c. $73,600. d. $32,320.