McKenna Company Is Considering Acquiring a New Machine for Its

McKenna Company is considering acquiring a new machine for its manufacturing facility. Themachine is expected to generate annual operating cash inflows of $100,000 for each of the first fouryears, $75,000 in both years five and six, and have a salvage value of $30,000 after six years. What isthe most that McKenna should be willing to pay for the machine, assuming that McKenna's minimum rate of return is 8%? Note: Present value tables are needed.

A) $448,425
B) $531,075
C) $365,500
D) $429,525