QUESTION 35 The Management of Arnold Corporation is considering the purchase of a new machine costing $400,000. The residual value of the machine is estimated to be 50. The company's desired rate of return is 8% The estimated income and not cash flows associated with the investment are as follows: Year Operating Income Net Cash Flow 1 $100,000 $180,000 2 40,000 120,000 3 20,000 100,000 4 10,000 90,000 5 10,000 10,000 The net present value for this investment is A negative $30,850 B, none of these G. negative $265.710 D. positive $201.710 E positive $30,850