Spotty Ltd plans to purchase a machine costing $\$ 18,000$ to save labour costs. Labour savings would be $\$ 9,000$ in the first year and labour rates in the second year will increase by $10 \%$. The estimated average annual rate of inflation is $8 \%$ and the company's real cost of capital is estimated at $12 \%$. The machine has a two year life with an estimated actual salvage value of $\$ 5,000$ receivable at the end of year 2 . All cash flows occur at the year end.

What is the negative NPV (to the nearest $\$ 10$ ) of the proposed investment?

A. $\$ 50$

B. $\$ 270$

C. $\$ 380$

D. $\$ 650$