Chovita Motors Corp. is considering a machine that costs $100,000 that will increase the after-tax net operating income of the company. The net income for the next 3 years is expected to be $30,000, $90,000, and $150,000. The depreciation expense for the next 3 years will be $5,000, $3,000, and $2,000. If the machine has no salvage value, net present value (NPV) required of the project will be _____. The expected rate of return is 10%. (Round off the answer to nearest units place.)
A. $151,669
B. $175,600
C. $369,996
D. $122,878
E. $250,614
Answer: D
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