Buchanan Enterprises Is Considering Investing in a Machine That Costs

Buchanan Enterprises is considering investing in a machine that costs $400 000.The machine is expected to generate revenues of $175 000 per year for five years.The machine would be depreciated using the straight-line method over its five-year life and have no salvage value.The company considers the impact of income taxes in all of its capital investment decisions.The company has a 40 per cent income tax rate and desires an after-tax rate of return of 10 per cent on its investment.The net present value of the machine is:

A) $179 992
B) $(13 338)
C) $119 340
D) $ (1966)