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I need help with this question Karpets Industries is investing in a new high-speed loom for weaving its rugs and carpets. The new loom will

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Karpets 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 $5,000. Assume that Karpets requires a return of 10% and that the loom will create annual cash savings of $16,250. What is the net present value (NPV) of the new loom? $1,670 $79,105 $81,670 $895

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