You are analyzing whether to use a new machine in your production process. you hire an engineer to analyze the pros and cons of getting the new machine. The cost of the engineers analysis is $20,000. The engineers analysis provides you with the following information.

Purchase price: $30,000

Expected life: 48 months

Monthly cash-flow: $2,000 (starting next month)

Discount Rate: 4% (monthly compounding)

In your NPV calculation, your initial costs (CF0) should be

A) $30,000

B) $50,000 (= $30,000+$20,000)

C) $10,000 (= $30,000 - $20,000)