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

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The management of Idaho 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 the foregoing information, use the following data in determining the acceptability of this investment: *Net Cash Year Income from Operations Flow 1 $100,000 $180,000 2 40,000 120,000 3 20,000 100,000 10,000 90,000 5 10,000 90,000 The net present value for this investment is $16,400 $25.200 $199,600) $(126,800)

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