A new photocopier costs $16 000. This cost will be depreciated prime cost to zero over 5 years. The new photocopier is expected to be worth $3 000 in 5 years. The new photocopier would save us $6 000 per year before taxes and operating costs.

An old photocopier was purchased 3 years ago for $5 600 and it is being depreciated prime cost to zero over 8 years. If the old photocopier were to be sold today, it is reasonable to expect a salvage value of $3 000. If we require a 10 percent return, what is the NPV of the purchase? Assume that tax is paid in the year after the year of income.

I want npv calculation or explaintion in word .