The management of Retz Corporation is considering the purchase of a new machine costing $500,000. 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 in this situation: Year Net Cash Flow 1 2 Income from Operations $100,000 80,000 50,000 10,000 10,000 3 $200,000 170,000 130,000 80,000 80,000 4 5 The average rate of return for this investment is: Oa. 16%. Ob. 5%. Oc. 20% Od. 18%