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

Present Value Present Value of an Periods of 1 at 8% 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 Co. wants to purchase a machine for $40,000 but needs to earn an 8% return. The expected year-end net cash flows are $12,000 in each of the first three years and $16,000 in the fourth year. What is the machine's net present value (rounded to the nearest whole dollar)?

A. $(9,075)

B. $2,685

C. $42,685

D. $(28,240)

E. $52,000