NorthCoast 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 $4000 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)$5000
B)$15,703
C)$703
D)$763

Question

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The Answer of NorthCoast 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 $4000 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)$5000
B)$15,703
C)$703
D)$763