XYZ Company is considering the purchase of a new piece of equipment and has gathered the following information about the purchase: Initial investment ........... ? Annual cost savings .......... $38,000 Salvage value in 8 years ..... 20% of initial investment Repair in 5 years ............ $16,000 Working capital needed now ... $31,000 Cost of capital .............. 14% Life of project .............. 8 years The working capital needed now will be released for investment elsewhere at the end of the eight years. The net present value of the new equipment is -$26,563. Calculate the salvage value for this piece of equipment.