Manatee Manufacturing Sells a Piece of Equipment to Make Room

Multiple Choice

Manatee Manufacturing sells a piece of equipment to make room for new machinery. Manatee will receive the sales price of $50,000 at the end of 4 years. Assuming interest at a rate of 6% per year, the Present Value of this future cash flow is how much?

A) $39,604.50
B) $39,515.50
C) $63,124.00
D) $173,255.50