Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $145,000. The equipment will have an initial cost of $525,000 and have a 5 year life. The salvage value of the equipment is estimated to be $79,000. If the hurdle rate is 12%, what is the approximate net present value?

$42,521

$145,000

$(2,304)

$224,000