The Adele Tower Resort's Accountant Has Developed the Following Estimates $\$ 40,000$

The Adele Tower Resort's accountant has developed the following estimates relating to a proposed investment in its laundry department.
Cost of new laundry equipment
Annual cash savings from new equipment
Life of the new equipment
Equipment salvage value
Adele Tower Resort's cost of capital
$\$ 40,000$
$\$ 9,000$
7 years
$\$ 4,000$
$8 \%$ What is the net present value of the proposed investment?

A) $7,822
B) $8,131
C) $8,648
D) $9,186
E) $9,823