Palmetto Products is considering the purchase of a new industrial machine. The estimated cost of the machine is $50,000. The machine is expected to generate annual cash inflows for the next four years as follows: Year Annual cash flow 1 $25,000 2 $20,000 3 $20,000 4 $15,000 The machine is not expected to have a residual value at the end of its useful life. If Palmetto uses a discount rate of 16%, what is the expected net present value of the machine? (ignore taxes) Answer a. $12,800 b. $18,969 c. ($5,816) d. $7,515