A Company Is Considering the Purchase of New Equipment for $45,000.The

A company is considering the purchase of new equipment for $45,000.The projected after-tax net income is $3,000 after deducting $15,000 of depreciation.The machine has a useful life of 3 years and no salvage value.Management of the company requires a 12% return on investment.The present value of an annuity of 1 for various periods follows:
Period Present value of an annuity of 1 at 12%
1……) 0.8929
2……) 1.6901
3……) 2.4018
What is the net present value of this machine assuming all cash flows occur at year-end?

A) $(1,768)
B) $3,000
C) $15,000
D) $18,000
E) $43,232