A company is considering the purchase of new equipment for $60,000. The projected annual net cash flows are $25,200. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 12% return on investment. The present value of an annuity of 1 for various periods follows:

Periods		Present value of an annuity of $1 at 12%
1		0.8929
2		1.6901
3		2.4018

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

Multiple Choice

$3,558

$3,500

$525

$25,200

$60,525