A company is considering the purchase of new equipment for $87,000. The projected annual net cash flows are $34,400. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 8% return on investment. The present value of an annuity of $1 for various periods follows: Present value of an annuity of $1 at 8% 0.9259 1.7833 2.5771 Period What is the net present value of this machine assuming all cash flows occur at yearend? Multiple Choice $86,075 $4,400 $1,552 $29,000 $33,400