save & Ext submit Question 3 (of 4) 600 points A-14 Present Value Analysis in Nonprofit Organizations The Johnson Research Organization, a nonprofit organization that does not pay taxes, is considering buying laboratory equipment with an estimated life of seven years so it will not have to use outsiders' laboratories for certain types of work. The following are all of the cash flows affected by the decision: Use Exhibit A8. $6,550,000 Investment (outflow at time 0) Periodic operating cash flows Annual cash savings because outside laboratories are not used Additional cash outflow for people and supplies to operate the equipment 1.590,000 390,000 590,000 Salvage value after seven years, which is the estimated Me of this project Discount rate 8% Required: Calculate the net present vallue of this decision. (Round PV factor to 3 decimal places.) Should the organization buy the equipment? O Yes O No References A-14 Present Value Analysis in Difticuity: 2 Medium Nonprofit Organizations Worksheet