Branson Manufacturing is considering purchasing a piece of equipment costing

$45,000. The new equipment would create a new cash inflow of $20,000 for five years. At the end of the five years, the equipment would have no salvage value. The company's cost of capital is 10% and the tax rate is 34%. Assuming the com¬ pany uses straight-line depreciation for tax purposes, what is the net present value of purchasing the new equipment, taking income taxes into account?

(LO 1)