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% APR (monthly compounding)

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

Group of answer choices

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

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

-$30,000