Swifty, Inc. is considering purchasing equipment costing $36000 with a 6-year useful life. The equipment will provide annual cost savings of $9000 and will be depreciated straight-line over its useful life with no salvage value. Swifty requires a 10% rate of return.

Present Value of an Annuity of 1Period 8%9% 10%11% 12%15% 64.6234.4864.3554.2314.1113.784

What is the approximate net present value of this investment?

$18000

$3195

$4374

$2078