Currently, industrial scale 3D printers are expensive at about $100,000 each. They are, however, very helpful as they can save the owner about $25,000 per year by shortening product development times. It can operate for five years at which time it will be obsolete and will be sold for negligible value. If the company were to purchase the printer, what would be the NPV of this project if the applicable discount rate is 7% per year?

Select one:

a. $4,745

b. $2,505

c. $7,887

d. $5,874