(Ignore income taxes in this problem.) Your Companys cost of capital is 5%, It is contemplating the purchase of equipment to replace equipment that it is currently leasing. The useful life of the equipment is four years. Use the data below to determine the net present value of purchasing the equipment.

Cost of equipment $940,000

Current lease payments $250,000

Repair end of year 2 $6,000

Repair end of year 3 $12,000

Salvage value $85,000

$6,087

$1,641

$8,373.

$645

$290