Wilson Productions Bought a Piece of Equipment for $53,400 That

Wilson Productions bought a piece of equipment for $53,400 that will last for 5 years. The equipment will generate annual net operating cash inflows of $13,600 and will have a $1,000 salvage value at the end of its life. Straight-line depreciation is used. The income tax rate is 30%. What is the net present value using a 7% required rate of return?

A) $2,362
B) $3,076
C) $3,362.
D) None of these answer choices are correct.