(Ignore Income Taxes in This Problem

(Ignore income taxes in this problem.) Beaver Company is investigating the purchase of a new threading machine that costs £18,000. The machine would save about £4,000 per year over the present method of threading component parts, and would have a salvage value of about £3,000 in 6 years when the machine would be replaced. The company's required rate of return is 12%. The machine's net present value is

A) £1,556.
B) (£35) .
C) £11,000.
D) £8,000.