The following information is available concerning the purchase of a new piece of equipment: Initial investment ................ $120,000 Annual cost savings ............... $ 80,000 Salvage value in 7 years .......... $ 30,000 Repair required in 4 years ........ $ 40,000 Working capital needed now ........ $ 30,000 Cost of capital ................... 24% Life of equipment ................. 7 years Income tax rate ................... 30% Assume that the working capital needed now will be released at the end of the 7 years for investment elsewhere. Calculate the net present value of the new piece of equipment. To answer this question use the present value table factors given below. No credit will be awarded for this question using a means other than the table factors given below to answer this question. Factors from the present value of a lump sum table for: i = 24%: n = 1 n = 3 n = 4 n = 5 n = 6 n = 7 n = 8 0.810 0.520 0.500 0.340 0.270 0.300 0.180 Factors from the present value of an annuity table for: i = 24%: n = 1 n = 3 n = 4 n = 5 n = 6 n = 7 n = 8 0.810 1.980 2.410 2.740 3.020 3.250 3.430