A company is evaluating whether or not to purchase a new machine. The cost of the machine is $200,000. They estimate the machine will produce profits of $25,000 a year for ten years. To reach a decision they would use which time value formula?

the present value of one cash flow to be received in ten years (PV)

the present value of ten equal, annual cash flows (PVA)

the future value of one cash deposit, invested when the machine is bought (FV)

the future value of ten equal, annual cash flows (FVA)