Halibut Company is considering the purchase of a machine with the following characteristics:

Initial cost	$200,000
Useful life of the machine	8 years
Required rate of return (discount rate)	10%
Annual net operating cash flows	$40,000
Residual value (at end of useful life)	$12,000

Compute the net present value (NPV) of this investment opportunity [use PV (present value) tables]. Round your answer to the nearest dollar.

• $25,400

• $19,004

• $13,400

• $77,420