A company is considering the purchase of new equipment costing $ 70,000. The projected annual after-tax net income from the equipment is $ 3,600, after deducting $ 15,000 for depreciation. The machine has a useful life of 3 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

• $ 56,026.

• $ (23,744).

• $ 32,585.

• $ (56,026).

• $ 23,744.