Reference: 10-03
Apex Corp -Benz Company Is Considering the Purchase of a Machine That

Reference: 10-03
Apex Corp. is planning to buy production machinery costing $100,000. This machinery's expected useful life is five years, with no residual value. Apex uses a discount rate of 10% and has calculated the following data pertaining to the purchase and operation of this machinery: $$\begin{array} { | c | c | } \hline \text { Year } & { \begin{array} { c } \text { Estimated } \\\text { annual net } \\\text { cash inflow }\end{array} } \\\hline 1 & \$ 60,000 \\\hline 2 & 30,000 \\\hline 3 & 20,000 \\\hline 4 & 20,000 \\\hline 5 & 20,000 \\\hline\end{array}$$
-Benz Company is considering the purchase of a machine that costs $100,000 and has a useful life of 18 years with no salvage value.:

A) $14,600.
B) $13,760.
C) $42,413.
D) it is impossible to determine from the data given.