The Following Present Value Factors Are Provided for Use in This

question 83

Multiple Choice

The following present value factors are provided for use in this problem. $$\begin{array} { c c c } \text { Periods } & \text { Presert Value } & \text { Presert Value of arl } \\ & \text { of } \$ 1 \text { at } 8 \% & \text { Annuity of } \$ 1 \text { at } 8 \% \\1 & 0.9259 & 0.9259 \\2 & 0.8573 & 1.7833 \\3 & 0.7938 & 2.5771\\4&0.07350&3.3121\end{array}$$ Xavier Co. wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,000 in each of the four years. What is the machine's net present value?

• A) $3,480.
• B) $2,745.
• C) $40,480.
• D) ($3,480).
• E) ($2,745).