HT Tech wants to purchase a $420,000 machine. The machine will last 10 years, be paid off in 6 years, and have no salvage value at the end of its life. Net annual cash flows are $24,000, the discount factor is 12%, and the present value of cash flows is $135,605. Per the NPV method, the purchase is acceptable for HT. What was the determining factor in this decision?

• A
• :
• The cash payback period was shorter than the expected life.
• B
• :
• The NPV of cash flows was positive.
• C
• :
• The discount rate was under 15%.
• D
• :
• The NPV was less than the purchase price.