DRJ Corporation Is Considering the Acquisition of New Equipment Costing

DRJ Corporation is considering the acquisition of new equipment costing $650,000. DRJ has estimated the annual operating cash flows to be $125,000 for ten years and the net present value of the equipment to be $15,500. What was DRJ's estimate of the equipment's salvage value, assuming that DRJ used a 14% discount rate in the calculation of the net present value? Note: Present value tables are needed.

A) $13,500
B) $50,000
C) $57,500
D) $27,500