Poe Company is considering the purchase of new equipment costing $87,500. The projected net cash flows are $42,500 for the first two years and $37,500 for years three and our The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present alue of an annuity of St and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine (rounded to the nearest whole dallar Periods 1 Present Value of $1 Present Value of an at 10% Annuity of $1 at 10% 0.0091 0.8264 0.7514 0.6830 0.9091 1.7355 2.4869 3.1699 $40,049. O $(32.005) O $32.005. O $18.479) $18.479