Fleece Industries is investing in a new high - speed loom for weaving its rugs and carpets. The new loom will have a useful life of 7 years and cost $80,000. The loom's residual value is $7,000. Assume that the company requires a return of 8% and that the loom will create annual cost savings of $16,250. What is the net present value (NPV) of the new loom? Present Value of $1 Periods 8% 10% 12% 14% 5 0.681 0.621 0.567 0.519 6 0.630 0.564 0.507 0.456 0.583 0.513 0.452 0.400 0.540 0.467 0 404 0.351 0.500 0.424 0.361 0.308 10 0.463 0.386 0.322 0.270 Present Value of Annuity of $1 O A. $517 O B. $88,679 O C. $8,679 all O D. $4,598