Question - Mid-Town Products Inc. purchased equipment costing $150,000. Annual operating cash inflows are expected to be $26,000 each year for fifteen years. At the end of the equipment's life, the salvage value is expected to be $18,000. If Mid-Town's cost of capital is 14 percent, what is the asset's net present value? (ignore income taxes)
a. $2,212
b. $18,000
c. $4,245
d. $23,592