(Present Value Tables Are Required

(Present value tables are required. ) Karpets Industries is investing in a new high-speed loom for weaving its rugs and carpets.The new loom will have a useful life of 7 years and cost $80,000.The loom's residual value is $5,000.Assume that Karpets requires a return of 10% and that the loom will create annual cost savings of $16,250.What is the net present value (NPV) of the new loom?

A) $1,670
B) ($3,460)
C) $81,670
D) ($895)