A company is considering the purchase of new equipment for $54,000. The projected annual net cash flows are $22,300. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 9% return on investment. The present value of an annuity of 1 for various periods follows:

Periods	Present value of an annuity of 1 at 9%
1	0.9174
2	1.7591
3	2.5313

What is the net present value of this machine assuming all cash flows occur at year-end?

$18,000

$3,300

$2,448

$21,300

$53,917