Roy Company is trying to decide whether to invest in one of two projects: X or Z. Associated data for each investment project follow:

	Project
	X	Z
Cost of equipment	$90,000	$140,000
Useful life	6 years	9 years
Annual net cash inflow	$25,000	$ 30,000
Salvage value	$8,000	$12,000

The equipment for each project is in Class 22 with a 30% maximum CCA rate. The income tax rate is 30%. Roy's after-tax cost of capital is 12%.

The NPV for Project Z should be :

$ 3,385

$ (23,780)

$ 51,637

$ 24,172

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