Trenton Inc. is considering an equipment purchase that has a cost of $15,000. The equipment is expected to have a salvage value of $2,000 at the end of three years. In addition, the equipment is expected to generate cash flows over the next three years as follows:

Year	Annual cash flow
1	$8,000
2	$6,000
3	$3,000

If Trenton's cost of capital is equal to 14 percent, the net present value of the equipment is: (ignore income taxes)

Answer

	a.	$(1,340)
	b.	$10
	c.	$(357)
	d.	$993