The management of Urbine Corporation is considering the purchase of a machine that would cost $400,000 would last for 10 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 13% on all investment projects. (Ignore income taxes in this problem.)

The net present value of the proposed project is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

$86,240

$34,440

$74,440

$62,640