The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $950000. The investment is expected to generate $350000 in
annual cash flows for a period of four years. The required rate of return is 14%. The old machine can be sold for $50000. The machine is expected to have zero
value at the end of the four-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are
not considered. (Points : 3)
$119550; Yes
$326750; No
$1019550; Yes
$69550; No