Answer should be around 12,000 - 12,300

Carolyn's Clothing Cottage, a not-for-profit entity, is considering purchasing new equipment for a cost of $16,000. There will be no salvage value at the end of the equipment's useful life of 10 years. The machine is expected to generate $5,000 in cash inflows during each year of the equipment's ten-year life. Assuming Carolyn's hurdle rate is 12 percent, what is the maximum price Carolyn should pay for this equipment? Why? Compute the net present value of the machine. Should Carolyn acquire the machine? Why