Question: What is the net present worth using an interest rate of 8.5% over 8 years from operating equipment that upfront costs 40,000, a salvage value

What is the net present worth using an interest rate of 8.5% over 8 years from operating equipment that upfront costs 40,000, a salvage value of 4,000 at the end of the 4-year useful life assuming repeatability with the revenues and cost values given below?

1 2 3 4 5 6 7 8
Revenue 16,000 21,000 21,000 24,000 22,000 20,000 15,500 10,500
Operating Cost 4,500 5,500 6,000 7,200 4,500 5,500 6,000 7,200

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