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. $$\begin{array} { c c c } & \text { Present Value } & \text { Present Value of ar } \\\text { Periods } & \text { of } 1 \text { at } 10 \% & \text { Arruity of } 1 \text { at } 10 \% \\1 \ldots \ldots \ldots \ldots \ldots . & 0.9091 & 0.9091 \\2 \ldots \ldots \ldots \ldots \ldots . & 0.8264 & 1.7355 \\3 \ldots \ldots \ldots \ldots \ldots . & 0.7513 & 2.4869 \\4\ldots \ldots \ldots \ldots \ldots & 0.6830 & 3.1699\end{array}$$

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