Warchester Inc. is considering the purchase of a 3-D printer that will require an initial investment of $15,000. The printer will produce parts at a net savings of $4,000 per year in operating costs. The company will use a discount rate of 8.5%. What is the NPV of this equipment to the nearest dollar?
A) $5,000
B) $15,703
C) $703
D) $763

Question

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The Answer of Warchester Inc. is considering the purchase of a 3-D printer that will require an initial investment of $15,000. The printer will produce parts at a net savings of $4,000 per year in operating costs. The company will use a discount rate of 8.5%. What is the NPV of this equipment to the nearest dollar?
A) $5,000
B) $15,703
C) $703
D) $763