Catalina Mixer is considering installing a new cooler (equipment) in order to increase the volume and variety of beverages they can offer. The new cooler will cost $24,000. It is expected to last 7 years but only if the cooler is overhauled (REPAIRED) at a cost of $4,000 at the end of year 4. The new cooler is expected to have a $2,000 salvage value at the end of 7 years. The new cooler is expected to generate additional revenues of $15,000 per year with an increase in expenses of $9,000 per year. The discount rate is 12%. What is the net present value of this investment opportunity? PV of an annuity of $1 PV of $1 Time 10% 12% 14% Time 10% 12% 14% period period 1 0.909 0.893 0.877 1 0.909 0.893 0.877 2. 1.736 1.690 1.647 2 0.826 0.797 0.769 3 2.487 2.402 2.322 3 0.751 0.712 0.675 4 3.170 3.037 2.914 4 0.683 0.636 0.592 5 3.791 3.605 3.433 5 0.621 0.567 0.519 6 4.355 4.111 3.889 6 0.564 0.507 0.456 7 4.868 4.564 4.288 7 0.513 0.452 0.400 8 5.335 4.968 4.639 8 0.467 0.404 0.351 Multiple Choice -22,928 O 1,744 25,744 24,000