A business is considering purchasing a piece of new equipment for $200,000. The equipment will generate the following revenues:

Year 1: $50,000

Year 2: $50,000

Year 3: $50,000

Year 4: $60,000

The machine can be sold at the end of the year four for $25,000. Assume a discount of 8%.

1. What is the net present value(NPV)?

Select one:

a. -7890.99

b. 7899.99

c. -8,667.61

d. 9100.54