Clemens Company Is Considering the Purchase of a New Machine

Clemens Company is considering the purchase of a new machine for £160,000. The machine would generate an annual cash flow before depreciation and taxes of £62,588 for four years. At the end of four years, the machine would have no salvage value. The company's cost of capital is 12 per cent. The company claims capital allowances using straight-line depreciation and has a 40 per cent tax rate. What is the net present value for the machine?

A) £162,640
B) £2,640
C) £30,080
D) (£45,952)