Charlotte Company
Charlotte Company Invests in a New Piece of Equipment

Charlotte Company
Charlotte Company invests in a new piece of equipment costing $80,000. The equipment is expected to yield the following amounts per year for the equipment's four-year useful life: $\begin{array}{lr}\text { Cash rev enues } & \$ 120,000 \\\text { Cash expenses } & (64,000) \\\text { Depreciation expenses (straight-line) } & (20,000) \\\text { Income prov ided from equipment } & \$ 36,000\\\text { Cost of capital }&14\%\end{array}$
-Refer to Charlotte Company. What is the net present value of this investment in equipment?

A) ($4,480)
B) $41,592
C) $52,452
D) $83,184