Question: YOU REPLACE THE OLD EQUIPMENT (SALVAGE VALUE =0.0), WITH A NEW ONE WITH $7,500. YOUR PRODUCT COMES WITH BETTER QUALITY, SALES INCREASES, AND YOUR YEARLY

YOU REPLACE THE OLD EQUIPMENT (SALVAGE VALUE =0.0), WITH A NEW ONE WITH $7,500. YOUR PRODUCT COMES WITH BETTER QUALITY, SALES INCREASES, AND YOUR YEARLY BENEFIT BECOMES 5000. IN THESE 5 YEARS YOUR ANNUAL OPERATING COST WAS $ 2, 000. Interest rate = 9%

WHAT IS YOUR NET PRESENT WORTH OF THIS NEW MACHINE?

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