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 one through five 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	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 present value index for this investment is _____.

	a.	1.30
	b.	0.95
	c.	1.05
	d.	0.70