Cloud Corporation is considering the purchase of a new piece of equipment. The equipment costs $$30,040$ and will

have a salvage value of $$4,040$ after $9$ years. Using the new piece of equipment will increase Cloud's annual net cash

flows by $$6,040.$ Cloud's cost of capital is $12\%.($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$

Present Value Annuity of $$1)$

Note: Use appropriate factor from the PV tables.

Required:

a$.$ What is the net present value?

b$.$ What would the net present value be with a $15\%$ cost of capital?

c$.$ Based on the NPV calculations, what would be the equipment's internal rate of return?

Complete this question by entering your answers in the tabs below.

What is the net present value?

Note: Round your answer to the nearest whole dollar.