RST corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $ 205,000. Projected net cash inflows from the equipment are as follows:

Year 1	$ 60,000
Year 2	$ 50,000
Year 3	$ 55,000
Year 4	$ 50,000
Year 5	$ 47,500
Year 6	$ 45,000

RST corporation hurdle rate is 12%.

If RST corporation decides to refurbish the equipment at a cost of $30,000 at the end of year 6, it could be used for one more year and would have a $ 15,000 residual value at the end of year 7. Assume the cash inflow in year 7 is $ 32,500. What is the NPV of just the refurbishment?

Correct Answer: $ 6,260 Please show the formula for this amount . Thank you.