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Submit Quiz The management of Arnold Corporation is considering the purchase of a new machine costing $430,000. The company's desired rate of return is 10%.

Submit Quiz The management of Arnold Corporation is considering the purchase of a new machine costing $430,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to this information, use the following data in determining the acceptability of the proposed purchase: Operating Income Net Cash Flow $180,000 Year 1 $100,000 2 40,000 120,000 3 20,000 100,000 4 10,000 90,000 5 10,000 90,000 What is the net present value for this investment? a. $152,000 O b. $(25,200) c. $25,200 O d. $(124,800)

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