On August 1,2025 , Crane Company purchased a new machine on a deferred payment basis. A down payment of $24800 was made and 4 annual installments of $28800 each are to be made beginning on September 1, 2026. Due to an employee strike, Crane could not install the machine and thus incurred $1650 of storage costs. Costs of installation (excluding the storage costs) amounted to $3150. Crane's cost of capital is 9%. The present value of an ordinary annuity factor for 4 years at 9% is 3.240 . The present value of a single sum for 4 years at 8% is 0.708 . The amount to be capitalized as the cost of the machine is $144800.$140000.$114812.$122912