Apex Corp Is Planning to Buy a Production Machine Costing $100,000

Apex Corp. is planning to buy a production machine costing $100,000. This machine'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 machine:


(Ignore income taxes in this problem.)

-The net present value of this investment is closest to which of the following?

A) $20,420.
B) $28,400.
C) $50,000.
D) $80,000.