Boggs Corporation Is Considering the Purchase of a Machine with an Initial

Boggs Corporation is considering the purchase of a machine with an initial cost of $26,000, a useful life of 10 years, and a salvage value of $2,000. The company desires a 12% rate of return. Given the data provided, at a present value of an annuity for 10 years at 12% of 5.650 and a present value of $1 for 10 years at 12% of 0.322, the machine should be purchased only if annual net cash inflows are:

A) Greater than $4,487
B) Greater than $2,400
C) Greater than $2,600
D) Greater than $2,000