40

The following present value factors are provided for use in this problem.

Periods	Present Value of $1 at 8%	Present Value of an Annuity of $1 at 8%
1	0.9259	0.9259
2	0.8573	1.7833
3	0.7938	2.5771
4	0.7350	3.3121

Xavier Company wants to purchase an asset for $36,400 with a four-year life and a $1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,400 in each of the four years. What is the machine's net present value (round to the nearest whole dollar)?

Multiple Choice

• $2,167.

• $1,358.

• $38,567.

• $(2,167).

• $(1,358).