A piece of new equipment has been proposed by engineers to increase production of a certain manual

Question:

A piece of new equipment has been proposed by engineers to increase production of a certain manual welding operation. The initial investment cost is $25,000 and the equipment will have a market value of $5,000 at the end of a five year study period. Increased productivity attributable to the equipment will amount to $8,000 per year after extra operating costs have been subtracted from the revenue generated. If the firm's is 20% per year, what is the annual worth of the investment?
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...