Butler Corporation is considering the purchase of new equipment costing $39,000. The projected annual after-tax net income from the equipment is $1,500, after deducting $13,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 9% return on its investments. The present value of an annuity of $1 for different periods follows:

Periods	9%
1	0.9174
2	1.7591
3	2.5313
4	3.2397

What is the net present value of the machine?

Multiple Choice

• $(2,296).

• $36,704.

• $4,500.

• $32,907.

• $39,000.