Pique Corporation Wants to Purchase a New Machine for $300,000

Pique Corporation wants to purchase a new machine for $300,000.Management predicts that the machine can produce sales of $200,000 each year for the next 5 years.Expenses are expected to include direct materials,direct labor,and factory overhead (excluding depreciation) totaling $80,000 per year.The firm uses straight-line depreciation with no residual value for all depreciable assets.Pique's tax rate is 40%.Management requires a minimum 10% rate of return on all investments.What is the net present value (NPV) of the investment? (The PV annuity factor for 5 years,10% is 3.791. ) Assume that the cash inflows occur at year-end.

A) ($270,480) .
B) $63,936.
C) $109,428.
D) $154,920.
E) None of the above.