Question 8 (Ignore income taxes in this problem.) The Gage Company purchased a machine which will be depreciated by the straight-line method over its estimated 6 year life. The machine will have no salvage value. It will generate cash inflows of $7,500 each year over the next 6 years. Gage Company's required rate of return is 14%. If the net present value of this investment is $12,016, the purchase price of the machine was