The following present value factors are provided for use in this problem.


Periods Present Value of $1 at 8% Present Value of anAnnuity of $1 at 8%
1 0.9259 0.9259
2 0.8573 1.7833
3 0.7938 2.5771
4 0.7350 3.3121


Xavier Co. wants to purchase a machine for $37,700 with a four year life and a $1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,700 in each of the four years. What is the machine's net present value (round to the nearest whole dollar)?

(A) $5,173.
(B) $4,364.
(C) $42,873.
(D) $(5,173).
(E) $(4,364).