Metal Fabrication, Inc. is considering purchasing a new piece of equipment. The purchase price of the equipment is $50,000. Its useful life is 7 years, and A-1 has estimated that its use would return $9,935 each year of the equipment’s useful life (assumed to be received at the end of each year). A-1 uses straight-line depreciation and assumes that the new equipment would be worthless at the end of its useful life. A-1 uses and 8% rate of return in evaluating its investments.

Required
Calculate the net present value of the equipment investment A-1 is considering.