(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem. ) A piece of new equipment will cost $70,000.The equipment will provide a cost savings of $15,000 per year for ten years,after which it will have a $3,000 salvage value.If the required rate of return is 14%,the equipment's net present value is:

A) $8,240
B) $(8,240)
C) $23,888
D) $9,050