A machine costs $87,500 with estimated scrap value of $12,000 after 5 years. The asset is expected to increase revenue by $27,000 a year before maintenance costs of $8,200 a year. Assuming a tax rate of 33%, compute the net present value of the investment using a 5% interest rate and depreciation charges obtain from:

a. the straight line method of depreciation. (answer $1,989.82)

b. the sum of years digits method of depreciation. (answer $1,288.82)

c. the double declining balance method for two years followed by the straight line method. (answer $979.59)

Please show all the work.