Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and a $5,000 salvage value. The machine will lower operating costs by $17,250 per year. The companys required rate of return is 15%. The net present value of this investment is closest to:

Multiple Choice

$7,822.

$12,697.

$23,757.

$10,307.