Flexsteel Industries manufactures furniture for the retail, contract, and recreational vehicle furniture markets. Flexsteel is thinking of investing in a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $117,000. 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 $76,000. If the hurdle rate is 8%, what is the approximate net present value? Ignore income taxes. (Future Value of $1; Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.)

A)Zero

B)Negative $6,129

C)Positive $76,000

D)Positive $525,000

TABLE 11.1A Future Value of $1 5% 7% 8% 6% 4.25% 3.75% 4% 2% 3% Periods 10000 0 1.0000 10000 10000 10000 10000 10000 10000 10000 10200 10300 10375 10400 10425 10500 10600 1.0700 10800 1 11025 11236 11449 11664 2 1.0404 1060910764 10816 10868 3 11576 12250 12597 1.1910 1.0612 10927 1.1168 11249 11330 11811 13108 11255 1.2155 13605 4 11587 12625 10824 11699 12313 13382 12763 14026 1.4693 5 11593 12167 11041 1.2021 13401 14185 1.5007 1.5869 6 11262 12472 12653 12837 1.1941 1.6058 1.4071 15036 17138 7 11487 12299 12939 13159 13382 14775 15938 17182 18509 8 1.1717 12668 13425 13686 13951 16895 18385 15513 19990 11951 9 13048 13928 14233 1.4544 16289 17906 19672 2.1589 10 1.4450 1.4802 15162 12190 13439 3.2071 4.6610 20 3.8697 1.4859 20882 2.1911 18061 2.2989 2.6533 14% 12% 13% 20% Periods 9% 10% 11% 15% 25% 10000 1.0000 o 1.0000 10000 10000 10000 10000 10000 10000 12000 12500 1 10900 1.1000 11100 1.1400 11500 11200 11300 13225 14400 2 1.5625 1.1881 12769 12996 12100 1.2321 12544 15209 17280 3 12950 14429 14815 19531 13310 1 3676 1.4049 4 1.4116 1.5181 17490 24414 14641 15735 16305 16890 2.0736 20114 24883 5 3.0518 1.5386 1.6105 1.8424 19254 16851 17623 2.3131 2.9860 3 8147 6 1.6771 17716 1.8704 19738 2.0820 21950 4.7684 7 18280 1.9487 2.0762 2 2107 2.3526 25023 26600 3.5832 8 4.2998 5.9605 00 19926 21436 2.3045 2.4760 26584 28526 3.0590 3.5179 5 1598 74506 3.0040 3.2519 9 9 21719 2.3579 25580 2.7731 6 1917 9.3132 10 2.3674 25937 2.8394 31058 3.3946 370724.0456 20 5.6044 6.7275 80623 9.6463 11.5231 13.7435 16.3665 38.3376 86.7362 TABLE 11.2A Present Value of $1 2% Periods 3% 3.75% 4% 4.25% 5% 8% 6% 7% 1 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 2 3 0.9612 0.9426 0.9290 0.9246 0.9201 0.9070 0.8900 0.8734 08573 0.9423 0.9151 0.8954 0.8890 0.8826 0.8638 0.8396 0.8163 07938 0.9238 0.8885 0.8631 0.8548 0.8466 0.8227 07921 0.7629 0.7350 4 un 5 0.9057 0.8626 0.8319 0.8219 0.8121 0.7835 0.7473 0.7130 0.6806 0.8880 0.8375 0.8018 07903 0.7790 07462 07050 0.6663 0.6302 6 7 0.8706 0.8131 0.7728 0759907473 07107 0.6651 06227 0.5835 8 0.8535 0.7894 07449 07307 07168 0.6768 0.6274 0.5820 0.5403 9 0.8368 0.7664 0.7180 0.7026 0.6876 06446 0.5919 0.5439 05002 10 0.8203 0.7441 0.6920 0.6756 0.6595 0.6139 0.5584 0.5083 0.4632 20 0.6730 0.5537 0.4789 0.4564 0.4350 0.3769 0.3118 0.2584 0.2145 Periods 9% 10% 11% 12% 13% 14% 15% 25% 20% 1 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8333 0 8000 2 0.8417 0.8264 0.8116 0.7972 07831 0.7695 0.7561 0.6944 0 6400 3 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6575 0.578705120 4 07084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5718 0.4823 0.4096 5 0.6499 0.6209 0.5935 0.5674 0.5428 0 5194 0.4972 0.4019 0.3277 6 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.3349 0.2621 7 0.5470 0.5132 0.4817 0.4523 04251 03996 0.3759 0.2791 02097 8 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.2326 0.1678 9 0.4604 0.4241 0 3909 0.3606 0.3329 0.3075 0.2843 0.1938 0.1342 10 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0 2472 0.1615 0.1074 20 0.1784 01486 0.1240 0.1037 00868 0.0728 0.0611 0.0261 0.0115 TABLE 11.3A Future Value of an Annuity of $1 2% 4% 4.25% 79 3% Periods 3.75% 5% 6% 8% 1.0000 1.0000 1 10000 10000 1.0000 10000 1.0000 10000 10000 2 20375 20200 20300 20400 20425 2.0500 20600 20700 20800 3 3.0909 3.0604 3 1139 31216 31293 31525 3.2149 3.1836 3.2464 41216 4 4.1836 4.2307 4.2465 42623 4 5061 4 3101 43746 4.4399 5 5 2040 5,3091 53893 5.4163 5.4434 5.5256 5.6371 5.7507 5.8666 6 63061 6.4684 6.5914 6.6330 6.6748 6.8019 6.9753 71533 73359 7 7 74343 76625 7.8386 7.8983 79585 8 1420 8.3938 8.6540 8.9228 00 8 8.5830 8.8923 9.1326 9.2142 92967 95491 9.8975 10.2598 10.6366 9 9.7546 10.1591 10.4750 10.5828 106918 11.0266 11.4913 11.9780 124876 10 10.9497 11.4639 11.8678 12.0061 12.1462 12 5779 13.1808 13.8164 14.4866 20 24.2974 26.8704 29.0174 297781 30.5625 330660 36.7856 40.9955 45.7620 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1 1.0000 1.0000 1.0000 10000 10000 1.0000 10000 10000 1.0000 N 2.0900 21000 2.1100 2.1200 21300 21400 2.1500 22000 2.2500 3 3.2781 3.3100 3.3421 3.3744 3.4069 3.4396 3.4725 3.6400 3.8125 4 4.5731 4.6410 4.7097 4.7793 4.8498 4.9211 4.9934 5.3680 5.7656 5 5.9847 6.1051 6.2278 6.3528 6.4803 6.6101 6.7424 7.4416 8.2070 6 75233 7.7156 79129 8.1152 8.3227 8.5355 87537 9.9299 11.2588 7 7 9.2004 9.4872 97833 10.0890 10.4047 10.7305 11.0668 12.9159 15.0735 00 11.0285 11.4359 11.8594 12 2997 127573 13 2328 137266 16.4991 19.8419 9 13,0210 13.5975 14.1640 14.7757 15.4157 16.0853 16.7856 20.7989 25.8023 10 15.1929 15.9374 167220 175487 18.4197 193373 20 3037 25.9587 33 2529 20 51.1601 57.2750 64.2028 720524 80.9468 91.0249 102.4436 186.6880 342.9447 TABLE 11,4A Present Value of Annuity of $1 2% 3% Periods" 3.75% 45 4.25% 5% 64 7% 8% 1 09804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 2 19416 19135 1.8929 1.8861 18794 18594 18334 1.8080 17833 3 2.8839 2.8286 2.7883 2.7751 27620 2.7232 26730 26243 25771 4 3.8077 3.7171 3.6514 3,6299 36086 3.5460 3.4651 3.3872 3.3121 5 5 4.7135 4.5797 4.4833 4.4518 4.4207 43295 4.2124 4.1002 3.9927 6 5.6014 5.4172 5 2851 5.2421 5.1997 5.0757 4 9173 4.7665 4.6229 7 6.4720 62303 6.0579 6.0021 5.9470 5.7864 5.5824 5.3893 5 2064 8 50 73255 70197 6.8028 6.7327 6.6638 6.4632 6.2098 5.9713 5.7466 9 9 8.1622 77861 75208 74353 73513 71078 6 8017 6.5152 6.2469 10 8.9826 8.5302 8.2128 8.1109 8.0109 77217 73601 70236 6.7101 20 16.3514 14.8775 13.8962 13.5903 13.2944 12.4622 11.4699 10.5940 9.8181 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1 0.9174 0.9091 0.9009 0.8929 0.8550 0.8772 0.8696 0.8333 0.8000 2 1.7591 17355 17125 1.6901 1.6681 1.6467 16257 15278 1.4400 3 2.5313 2.4869 2.4437 2.4018 2.3612 2.3216 22832 2.1065 19520 4 3.2397 3.1699 3.1024 30373 2.9745 2.9137 2.8550 2.5887 2.3616 5 3.8897 37908 3.6959 3.6048 3.5172 3.4331 3.3522 2.9906 2.6893 6 4.4859 4.3553 42305 4 1114 3.9975 3.8887 3.7845 33255 2.9514 7 5.0330 4.8684 4.7122 4.5638 4.42264.2883 4.1604 3.6046 3.1611 00 5.5348 5.3349 5.1461 4.9676 47988 4.6389 4.4873 3.8372 3.3289 9 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 47716 4.0310 3.4631 10 6.4177 6.1446 5.8892 5.6502 5.4262 5 2161 50188 4.1925 3.5705 20 9.1285 8.5136 79633 74694 70248 6.6231 6.2593 4.8696 3.9539