Poe Company is considering the purchase of new equipment costing $86,500. The projected

Poe Company is considering the purchase of new equipment costing $86,500. The projected net cash flows are $41,500 for the first two years and $36,500 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. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine.