Interior Products, Inc. is evaluating the purchase of a new machine to use in its manufacturing process. The new machine would cost $36,000 and have a useful life of 5 years. At the end of the machine's life, it would have a residual value of $2200. Annual cost savings from the new machine would be $12,400 per year for each of the 5 years of its life. Interior Products, Inc. has a minimum required rate of return of 18% on all new projects. The net present value of the new machine would be closest to: Present Value of $1 Periods 14% 16% 18% 5 0.519 0.476 0.437 6 0.456 0.410 0.370 7 0.400 0.354 0.314 Present Value of Annuity of $1 Periods 14% 16% 18% 5 3.433 3.274 3.127 6 3.889 3.685 3.498 7 4.288 4.039 3.812 (Round any intermediary calculations and your final answer to the nearest dollar.) $38,775. $2775. $961. $3736.