3M Company develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety & Industrial, Transportation & Electronics, Health Care, and Consumer. 3M has budgeted for a new copier this year. 3M will pay $45,000 for the new copier, which is expected to last 7 years. Annual maintenance costs will total $1,000 a year. Labor cost savings for back office staff and a front desk receptionist will be $6,000 and $5,000 a year, respectively. The copier will have a residual value of $5,000 at the end of 7 years. The accountant at 3M has established the cost of capital (required rate of return for investors) for the firm at 10 percent.

Required:

Calculate the NPV of the project and briefly discuss whether to accept or reject the project.