Calculate net present value assuming a $12\%$ rate of return. Bramble Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment:

Old Equipment

Cost $$81,840$

Accumulated depreciation $$41,000$

Remaining life $8$ years

Current salvage value $$11,200$

Salvage value in $8$ years $$0$

Annual cash operating costs $$35,700$

New Equipment

Cost $$38,000$

Estimated useful life $8$ years

Salvage value in $8$ years $$4,600$

Annual cash operating costs $$30,700$

Depreciation is $$10,230$ per year for the old equipment. The straight$-$line depreciation method would be used for the new equipment over an eight$-$year period with salvage value of $$4,600.$ Annual rate of return is $3\mathrm{.}87\%.$ Payback period is $5\mathrm{.}360$ years