Edgar Company Is Considering the Purchase of New Equipment Costing

Edgar Company is considering the purchase of new equipment costing $80,000. The projected net cash flows are $35,000 for the first two years and $30,000 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Edgar requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.

A) $(15,731) .
B) $(4,896) .
C) $15,731.
D) $4,896.
E) $23,775.