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%. In addition to the foregoing information, use the following data in determining the acceptability in this situation:

Year Income from Operations Net Cash Flow

1 $100,000 $200,000

2 80,000 170,000

3 50,000 130,000

4 10,000 80,000

5 10,000 80,000

The net present value for this investment is:

options:

a) positive $150,000

b) negative $24,300

c) positive $24,300

d) negative $150,000