Tom Builders purchases a machine from Tom Company in exchange for a $5,000 zero-interest-bearing note payable in four years. In addition to the note payable, Tom Builders pays cash for freight costs of $500, and installation costs of $200. Assuming an appropriate interest rate of 9 percent, the present value of a single sum for 4 periods is 9% is .7084 and the present value of an annuity is 3.2397. What is the historical cost of the machine purchased by Tom Builders?

4,042

5,700

3,542

4242