Smart Manufacturing Company is thinking about reducing its labour costs by automating a critical task that is currently performed manually. The automation requires the installation of a new machine. The cost to purchase and install the machine is $15,000. Once installed, it will reduce the firm's annual labour costs by $4,200. What is the NPV of the project, if the life of the machine is 15 years and the firm's required rate of return on investment projects is 25%?

Group of answer choices

-$1,375

$1,209

None of the other answers is correct

$4,637

-$1,274