Basic NPV with Salvage Value Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the tractor's useful life, the salvage value of the tractor is expected to be $5,000.

Required: What is the net present value if the cost of capital is 12 percent?

Use the time value of money charts for your calculations. (Ignore income taxes.) Round your answer to the nearest whole number.

1) Present value of an annuity (PVA) = R(DFAn,r). R is the annual cash inflow; DFA is the discount factor for an ordinary annuity, n is the number of periods and r is the rate.

2) Present Value (PV) = R(DFn,r). R is the cash inflow, DF is the discount factor, n is the number of periods and r is the rate.

3) NPV = Present value of cash inflows - present value of cash outflows. (PV of cash inflows + PV of salvage value) - Initial investment = NPV.

The answer IS NOT 14298.07 or 14298.10 as it shows on previous posts.