Stoves Company is considering an investment in a machine that would reduce annual labor costs by $30,000. The machine has an expected life of 10 years with no salvage value. The machine would be depreciated using the straight-line method over its useful life. Assume that Stoves Company will invest in the machine if it generates an internal rate of return of 16 percent. What is the maximum amount the company can pay for the machine and still meet the internal rate of return criterion? Present value tables or a financial calculator are required.

Group of answer choices

$144,990

$210,000

$180,000

$187,500