Hello Accounting question here,

Silverberg Manufacturing is considering investing $90,000 in a new piece of machinery that will generate net annual cash flows of $40,000 each year for the next 4 years. The machine has a salvage value of $15,000 at the end of its 4 year useful life. Silverberg's cost of capital and discount rate is 6%. Which of the following tables and criteria should we use to discount thesalvage value of the equipment?

Question 1 options:

PV of a single sum table, n=1, i=6%

PV of annuity table, n=1, i=6%

PV of annuity table, n=4, i=6%

PV of a single sum table, n=4, i=6%

Which answer is the correct one, and what is a good way to remember the correct answer? I believe it to be option 3 as the question says "each year" but salvage value throws me off a bit.