Vextra Corporation is considering the purchase of new equipment costing $42,000. The projected annual cash inflow is $12,400, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows:

Periods	12 Percent
1	0.8929
2	1.6901
3	2.4018
4	3.0373

What is the net present value of the machine (rounded to the nearest whole dollar)?

$42,000.

$(37,663).

$(2,700).

$(4,337).

$7,663.

The calculation of annual net cash flow from a particular investment project should include all of the following except:

Income taxes.

Revenues generated by the investment.

General and administrative expenses.

Cost of products generated by the investment.

Depreciation expense.