Speed Queen Laundromat faces a 35% tax rate and uses a 11.3% discount rate. Speed Queen is purchasing a new $47,700 touchscreen laundry system that will raise annual sales by $7,700 and lower annual operating costs by $13,800. This system, which will have no salvage value, is expected to have a 6-year life and will be depreciated (straight-line) to zero. What is the NPV of purchasing the new laundry system?

Multiple Choice

• $5,535

• $4,468

• $32,588

• $19,399

• $22,585