Question - The Sanchaz Corporation is considering the purchase of a new machine that will cost the company $24,000 and will be worth nothing at the end of three years. Their current tax rate is 20% and they will depreciate the machine $8,000 each year for three years. The machine is expected to generate $8,500 of cash inflows each year over the next 3 years. Sanchaz Corporation's cost of capital is 4%. The net present value of the investment in the machine is:
a. $23,311
b. $(6,689)
c. $17,761
d. $(12,240)
e. $(689)