Question: ABC Construction Inc. is considering whether to purchase a Caterpillar backhoe or not. The cost of the backhoe is $40,867, the annual net benefit is

ABC Construction Inc. is considering whether to purchase a Caterpillar backhoe or not. The cost of the backhoe is $40,867, the annual net benefit is $3,332, and the company can sell the backhoe for $22,988 after 8 years. Given the company's MARR is 5%, what is the NPV of the backhoe?

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