Vandezande Inc. is considering the acquisition of a new machine that costs $370,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are (Ignore income taxes.):

	Incremental Net Operating Income			Incremental Net Cash Flows
Year 1	$	54,000			$	128,000
Year 2	$	31,000			$	105,000
Year 3	$	52,000			$	126,000
Year 4	$	49,000			$	123,000
Year 5	$	48,000			$	122,000

See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

Assume cash flows occur uniformly throughout a year except for the initial investment.

If the discount rate is 10%, the net present value of the investment is closest to:

a.

$234,000

b.

$87,479

c.

$457,479

d.

$370,000