Poe Company is considering the purchase of new equipment costing $90,000. The projected net cash flows are $45,000 for the first two years and $40,000 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 an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.

Periods	Present Valueof 1 at 10%	Present Value of anAnnuity of 1 at 10%
1	0.9091	0.9091
2	0.8264	1.7355
3	0.7513	2.4869
4	0.6830	3.1699

$(37,430).

$45,474.

$23,007.

$37,430.

$(23,007).