Data for Van Guard Designs Are

Multiple Choice

Data for Van Guard Designs are:
Investment in new equipment $90 000
Net annual cash inflows 12 500
Salvage value of the new equipment 8 000
Life of the new equipment 10 years
Calculate the net present value of the machine assuming the cost of capital is 6% (ignore taxes and round answer to nearest whole dollar) .

A) $(15 733)
B) $(2 466)
C) $2 001
D) $6 468