Medow Inc, is considering purchasing equipment cost $10,000 with a 5 year useful life. The equipment will provide cost savings of $3,100 and will be depreciated straight-line over its useful life with no salvage value. Messita requires a 10% rate of return.
Present Value of Annunity 1
Period 5
8% 4.625
9% 4.485
10% 4.350
11% 4.235
12% 4.115
13% 3.785
What is the approximate net present value of this investment?