The first cost of a certain piece of machinery is $60,000. The machine will be used for five years, after which time it will be salvaged for $10,000. The machine's operating cost is expected to be $20,000 per year. If the inflation rate is 4% per year and the company's minimum attractive real rate of return is 20% per year, the present worth of the machine is closest to: a. $101,370 b. $110,700 c. $125,900 d. $153,420