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Pristine Products is considering the purchase of a new machine. The estimated cost of the machine is $45,000. The machine is expected to generate annual

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Pristine Products is considering the purchase of a new machine. The estimated cost of the machine is $45,000. The machine is expected to generate annual cash inflows for the next four years as follows: Year Annual cash flow $10,000 15,000 25,000 27,000 1 3 The machine is not expected to have a residual value at the end of its useful life. If the company uses a discount rate of 15 %, what is the expected net present value of the machine? (ignore taxes) $6,914 $6,253 $(2,757) $4,200

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