The following present value factors are provided for use in this problem. Cliff Co. wants to purchase a machine for $40,000, but needs to earn a return of 8%. The expected year-end net cash flows are $12,000 in each of the first three years, and $16,000 in the fourth year. What is the machine's net present value?
A) $(9,075).
B) $2,685.
C) $42,685.
D) $(28,240).
E) $52,000.

Question

The following present value factors are provided for use in this problem.  Cliff Co. wants to purchase a machine for $40,000, but needs to earn a return of 8%. The expected year-end net cash flows are $12,000 in each of the first three years, and $16,000 in the fourth year. What is the machine's net present value?
A) $(9,075). 
B) $2,685. 
C) $42,685. 
D) $(28,240). 
E) $52,000.

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11eaadfd_cc69_faeb_95d8_952dac0cd110_TB6948_00

The Following Present Value Factors Are Provided for Use in This