Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net annual cash flows of $30,000 each year for the next 7 years. The machine has a salvage value of $10,000 at the end of its 7 year useful life. Johnson's cost of capital and discount rate is 8%. Which of the following tables and criteria should we use to discount the net annual cash flow?

Question 4 options:

	PV of a single sum table, n=7, i=8%
	PV of annuity table, n=1, i=8%
	PV of a single sum table, n=1, i=8%
	PV of annuity table, n=7, i=8%