Lightning Furniture Co. face a 34% tax rate and use a 10.9% discount rate. LFC is purchasing a new $46,500 couch set that will raise annual sales by $9,700 and lower annual operating costs by $13,400. This system, which will have no salvage value, is expected to have a 5-year life and will be depreciated (straight-line) to zero. What is the NPV of purchasing the new couch set?

(select one)

• $5,683

• $25,736

• $21,706

• $32,732

• $5,343