A corporation is considering the purchase of new equipment costing $90,000. The projected after-tax annual net income from the equipment is $3,600, after deducting $30,000 depreciation.

Assume that revenue is to be received at each yearend, and the machine has a useful life of three years with zero salvage value. Management requires a 12% return on its investments.

What is the net present value of this machine?

a. $ 60,444

c. $(88,560)

e. $ (9,300)

b. $ 80,700

d. $ 90,000