Scott Corporation Is Considering the Purchase of New Equipment Costing

Scott Corporation is considering the purchase of new equipment costing $30,000.The projected annual after-tax net income from the equipment is $1,200,after deducting $10,000 for depreciation.The revenue is to be received at the end of each year.The machine has a useful life of three years and a $4,000 salvage value.Scott requires a 12% return on its investments.The factors for the present value of $1 for different periods follow:
$$\begin{array} { l r } \underline{\text { Periods }} & \underline{12 \text { Percent }} \\1 & 0.8929 \\2 & 0.7972 \\3 & 0.7118 \\4 & 0.6355\end{array}$$
What is the net present value of the machine and what is the maximum Scott would have been willing to pay for it?

A) $(251.52) but Scott would not pay any amount to acquire the machine because the NPV is negative.
B) $(251.52) and Scott would be willing to pay $29,748.48 for the machine.
C) $(251.52) but the price Scott would pay cannot be determined.
D) $900 and Scott would be willing to pay $30,900 to acquire the machine
E) $900 but Scott would not be willing to acquire the machine.