29

Imani Corporation is considering the purchase of new equipment costing $63,000. The projected annual cash inflow is $20,500, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Imani 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)?

		$(19,000)
		$19,000
		$735
		$(735)