A company is considering the purchase of new equipment for $51,000. The projected annual net cash flows are $20,800. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 10% return on investment. The present value of an annuity of 1 for various periods follows:

Periods		Present value of an annuity of $1 at 10%
1		0.9091
2		1.7355
3		2.4869

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

Multiple Choice

$765

$3,200

$728

$20,800

$51,728