The Management of Arkansas Corporation Is Considering the Purchase of a New

The management of Arkansas Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability of this investment: $\begin{array}{lll}& \text { Income from } & \text { Net Cash } \\\text { Year } & \text { Operations } & \text { Flow }\\1 & \$ 100,000 & \$ 180,000 \\2 & 40,000 & 120,000 \\3 & 40,000 & 100,000 \\4 & 10,000 & 90,000 \\5 & 10,000 & 120,000\end{array}$ The net present value for this investment is

A) $36,400
B) $55,200
C) $16,170)
D) $126,800)