Management is considering the purchase of a new machine for a cost of $20,000. It is estimated that the machine will generate positive net cash flows of S4,000 per year for six years and will be sold for salvage at the end of that time for $1,200. If management demands a 7% return on their fixed assets to justify their purchase, determine if management should purchase this machine by finding the present value of the future cash flows. 8. A. Management should not buy because the present value of the future cash flows equals $19,068 B. Management should not buy because the present value of the future cash flows equals $19,867 C. Management should buy because the present value of the future cash flows equals $20,268 D. Management should not buy because the present value of the future cash flows equals $16,783 E. Management should buy because the present value of the future cash flows equals $21,704 9. Listed below are the current liability accounts of Sample Company as of November 1,2 018 Accounts Payable $80,000 Wages Payable $3,800 Unearned Revenue $30,000 During November the following transactions occurred: 4 , I Borrowed $4.000 in cash from Third National Bank on a 4-month, 6%, S4,000