Vextra Corporation is considering the purchase of new equipment costing $35,000. The projected annual cash inflow is $11,000, 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:Periods12%10.892921.690132.401843.0373 What is the net present value of the machine?
A. $35,000.
B. $(3,100).
C. $3,410.
D. $(1,590).
E. $(33,410).
Answer: D
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