Poe Company is considering the purchase of new equipment costing $83,500. The projected annual cash inflows are $33,700, 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 an annuity of $1 and present value of an annuity of $1 for different periods are presented below. Compute the net present value of the machine (rounded to the nearest whole dollar).

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

• $40,654.

• $(23,326).

• $23,326.

• $(11,234).

• $11,234.

Poe Company is considering the purchase of new equipment costing $80,000. The projected annual cash inflows are $30,200, 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 an annuity of $1 and present value of an annuity for different periods are presented below. Compute the net present value of the machine (rounded to the nearest whole dollar).

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	0.7514	2.4869
4	0.6830	3.1699

Multiple Choice

• $(15,731).

• $(4,896).

• $15,731.

• $4,896.

• $32,334.

Vextra Corporation is considering the purchase of new equipment costing $35,000. The projected annual cash inflow is $11,000, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows:

Periods	12%
1	0.8929
2	1.6901
3	2.4018
4	3.0373

Compute the net present value of this investment (rounded to the nearest whole dollar).

Multiple Choice

• $(33,410).

• $(3,100).

• $35,000.

• $3,410.

• $(1,590).