Miles IncIs Considering the Purchase of a New Machine for $600000

Miles Inc.is considering the purchase of a new machine for $600000 that has an estimated useful life of 5 years and no salvage value.The machine will generate net annual cash flows of $105000.It is believed that the new machine will reduce downtime because of its reliability.Assume the discount rate is 8%.In order to make the project acceptable the reduction in downtime must be worth $\begin{array} { c c c } \underline{\text { Year }} & \begin{array} { c } \text { Present Value } \\\underline{\text { of } 1 \text { at } 8 \%}\end{array} & \begin{array} { c } \text { PV of an Annuity } \\\underline{\text { of } 1 \text { at } 8 \%}\end{array} \\1 & .926 & .926 \\2 & .857 & 1.783 \\3 & .794 & 2.577 \\4 & .735 & 3.312 \\5 & .681 & 3.993\end{array}$

A) $23958 per year.
B) $49662 per year.
C) $18264 per year.
D) $36147 per year.