Saturn Ltd$.$ wants to automate one of its production processes. The new equipment will cost $$180,000.$ In addition, Saturn will incur installation and testing costs of $$5,000$ and $$8,500$ respectively. The expected life of the equipment is $8$ years, and the salvage value of the equipment is estimated at $$18,000.$ The annual cash savings are estimated at $$32,000.$ The company's required rate of return is $14\%.$ Ignore income taxes. What is the net present value of this investment?

Question $16$Answer

a$.$

$($$$25,246)$

b$.$

$($$$38,746)$

c$.$

$$80,500$

d$.$

$($$$11,746)$