A company is considering the purchase of new equipment for $72,000. The projected annual net cash flows are $28,900. 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:

Period	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?

• $24,000

• $3,900

• $1,155

• $27,900

• $70,623