37] Vextra Corporation is considering the purchase of new equipment costing $39,000. The projected annual cash inflow is $11,800, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows:
|
Periods
|
12 Percent
|
|
1
|
0.8929
|
|
2
|
1.6901
|
|
3
|
2.4018
|
|
4
|
3.0373
|
What is the net present value of the machine (rounded to the nearest whole dollar)?
$(35,840).
$(3,900).
$39,000.
$5,840.
$(3,160).