A business is considering the purchase of a $40,000 piece of new equipment that will save the company $15,000 a year in each of the first two years and $8,000 a year in each of the next two years. Should the equipment be purchased if the capital cost of borrowing is 11% compounded annually and there is no residual value?

		NPV = ($3,192.77) No
		NPV = $6,000 Yes
		NPV = ($5,111.63) No
		NPV = ($611.96) No
		NPV = $9,108.42 Yes