In 6 years, Hopkins Company plans to receive $12,400 cash from the sale of a machine that has a $5,800 book value.

Year	FV of $1 at 8%				FV of an ordinary annuity at 8%				PV of $1 at 8%				PV of an ordinary annuity at 8%
1		1.080				1.000				0.926				0.926
2		1.166				2.080				0.857				1.783
3		1.260				3.246				0.794				2.577
4		1.360				4.506				0.735				3.312
5		1.469				5.867				0.681				3.993
6		1.587				7.336				0.630				4.623

If the firm is subject to a 30% income tax rate and has a(n) 8% after-tax hurdle rate, the correct discounted net cash flow would be:

Multiple Choice

$14,380.

$6,565.

$9,045.

$10,420.

None of the other answers is correct.