(TCO 8) Bozo Brothers purchased a machine that will be depreciated on the straight-line basis over an estimated useful life of 7 years with no salvage value. The machine is expected to generate cash flow, net of taxes, of $80,000 in each of the next 7 years. Bozos expected rate of return is 12%. Information on present value factors is as follows. Present value of $1 at 12% for seven periods 0.452 Present value of an ordinary annuity of $1 at 125 for seven periods 4.564 Assuming a positive net present value of $12,720, what was the original cost of the machine? (Points : 11)

A: $240,400

B: $253,120

C: $352,400

D: $377,840