A company is considering the purchase of new equipment costing $ 60,000. The projected annual after-tax net income from the equipment is $ 2,800, after deducting $ 18,000 for depreciation. The machine has a useful life of 4 years and no salvage value. The company requires a 10% return on its investments. The relevant present value factors for 10% are listed below.

Period	PV of 1 (10%)	PV of Annuity of 1 (10%)
1	0.9091	0.9091
2	0.8264	1.7355
3	0.7513	2.4869
4	0.6830	3.1699

What is the present value of the machine?

Multiple Choice

• $ 65,934.

• $ 18,909.

• $ 51,727.

• $ 37,800.

• $ 15,627.