AA Company is considering the purchase of a machine that cost $150,000. The useful life of the machine is 3 years. Annual cash cost savings are expected to be $100,000. The companys tax rate is 20%. The cost of capital assumed by the company is 10%. The company expects to use the straight-line depreciation for tax purposes. Find Net Present Value of the investment.

	1.	Between $73,000 and $74,000
	2.	Between $75,000 and $78,000
	3.	Between $79,000 and $84,000
	4.	More than $ 85,000