Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $300. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $3,000 to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is 8.00% per year, what should your buddy do?

What is the NPV of the machine? . (Round to the nearest dollar.)

What should your buddy do? (Select the best choice below.)

A. Accept the machine because the NPV is equal to or less than $0.

B. Reject the machine because the NPV is less than $ 0.

C. Accept the machine because the NPV is equal to or greater than $ 0.

D. Reject the machine because the NPV is equal to or greater than $0.