Nicholas Alexander Corporation is considering the purchase of new equipment costing $31,196. The projected annual net cash flow from the equipment is $11,803. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Daniels requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows: 1 Period - .08929; 2 Period 1.6901; 3 Periods 2.4018; 4 Periods 3.0373