Butler Corporation is considering the purchase of new equipment costing $72,000. The projected annual after-tax net income from the equipment is $2,600, after deducting $24,000 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 8% return on its investments. The present value of an annuity of $1 for different periods follows:

Periods	8%
1	0.9259
2	1.7833
3	2.5771
4	3.3121

What is the net present value of the machine?

Multiple Choice

• $61,850.

• $(3,449).

• $68,551.

• $72,000.

• $7,800.