Owens Mills Corp. is considering two mutually exclusive machines. Machine A requires an up-front expenditure at t = 0 of $450,000, it has an expected life of 2 years, and it will generate positive after-tax cash flows of $350,000 per year (all cash flows are realized at the end of the year) for 2 years. At the end of 2 years, the machine will have zero salvage value, but every two years the company can purchase a replacement machine with the same cost and identical cash inflows. Alternatively, it can choose Machine B, which requires an expenditure of $1 million at t = 0, has an expected life of 4 years, and will generate positive after-tax cash flows of $350,000 per year (all cash flows are realized at year end). At the end of 4 years, Machine B will have an after-tax salvage value of $100,000. The cost of capital is 10%. What is the net present value (on an extended 4-year life) of the better machine? a. $157,438 b. $177,754 c. $287,552 d. $355,508 e. $500,000