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The management of Nebraska Corporation is considering the purchase of a new machine costing $ 4 9 0 , 0 0 0 . The company's

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The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. 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:
\table[[,\table[[Operating],[Income]],\table[[Net Cash],[Flow]]],[Year,S100,000,$180,000
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