The Following Present Value Factors Are Provided for Use in This

Multiple Choice

The following present value factors are provided for use in this problem. $\begin{array} { | l | l | l | } \hline \text { Periods } & \text { Present value of } \mathbf { \$ 1 } \text { at } \mathbf { 8 \% } & \text { Present value of an annuity of } \mathbf { \$ 1 } \text { at } \mathbf { 8 \% } \\\hline 1 & 0.9259 & 0.9259 \\\hline 2 & 0.8573 & 1.7833 \\\hline 3 & 0.7938 & 2.5771 \\\hline 4 & 0.7350 & 3.3121 \\\hline\end{array}$
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) $(3,480) .
C) $40,480.
D) $(2,745) .
E) $2,745.