Chovita Motors Corp

Multiple Choice

Chovita Motors Corp. is considering a machine that costs $100,000 that will increase the net 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 and then net present value (NPV) of the project is _____. 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