Perpetual Power is considering the purchase of a new piece of equipment for a cost of $9,000.

Using a required rate of return of 12%, what is this project's NPV?

Select one:

a. $1561.19

b. $1216.56

c. $8,567.12

d. $8,000.00

Perpetual Power Machine Co. - Purchase of a New High Machining Tool Year Cash Flow Year 1 $500 Year 2 $500 Year 3 $3,000 Year 4 $3.000 Year 5 $10,000