Poe Company is considering the purchase of new equipment costing $89,000. The projected net cash flows are $44,000 for the first two years and $39,000 for years three and four. 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 value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine.

Periods	Present Value of $1 at 10%			Present Value of an Annuity of $1 at 10%
1		0.9091			0.9091
2		0.8264			1.7355
3		0.7513			2.4869
4		0.6830			3.1699

Multiple Choice

• $35,260.

• $43,304.

• $21,196.

• $(35,260).

• $(21,196).

can u please explain with steps, thank you