The following present value factors are provided for use in this problem:

Periods Present Value of $1 at 8% Present Value of an Annuity of $1 at 8%

1.............................................0.9259....................................................................0.9259

2.............................................0.8573.....................................................................1.7833

3............................................0.7938.....................................................................2.5771

4.............................................0.7350.....................................................................3.3121

Norman Company wants to purchase a machine for $40,000, but needs to earn an 8% return. The expected year-end cash flows are $12,000 in each of the first 3 years, and $16,000 in the fourth year. What is the machine's net present value (NPV) (round to the nearest whole dollar)?

Select one or more:

a.

$52,000.

b.

$(28,240).

c.

$ (9,075).

d.

$42,685.

e.

$2,685.