b.

Karpets Industries is investing in a new high-speed loom for weaving its rugs and carpets. The new loom will have a useful life of 8 years and cost $70,000. The loom's residual value is $8,000. Assume that Karpets requires a return of 10% and that the loom will create annual cost savings of $17,150. What is the net present value (NPV) of the new loom? (Round any intermediary calculations and your final answer to the nearest dollar.) (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) O A. $25,231 x Data Table B. $21,495 O C. $17,759 OD. $95,231 Present Value of $1 Periods 5 6 7 8% 0.681 0.630 0.583 0.540 0.500 0.463 10% 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.519 0.456 0.400 0.351 0.308 0.270 8 9 10 Data Table Present Value of Annuity of $1 Periods 8% 5 3.993 6 4.623 5.206 8 5.747 9 6.247 10 6.710 7 10% 3.791 4.355 4.868 5.335 5.759 6.145 12% 3.605 4.111 4.564 4.968 5.328 5.650 14% 3.433 3.889 4.288 4.639 4.946 5.216 Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Required rate of return Wacky Water Race $37,000 8 $10,000 $1,000 straight-line 10% Whack-A- Mole $20,000 8 $9,000 $1,000 straight-line 12% What is the net present value of the Whack-A-Mole game? (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) A. $25,116 OB. ($16,350) OC. $16,350 OD. ($25,116)