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 $..........$Salvage value in $8$ years......Repair in $5$ years.......... $..$Working capital needed now $...$Cost of capital$-.....$Life of project$-......?$$$38,00020\%$ of initial investment$$16,000$$$31,00014\%8$ yearsThe working capital needed now will be released for investment elsewhere at the end of the eight years.The net present value of the new equipment is $-$$$26,563.$Calculate the salvage value for this piece of equipment.Ignore the effects of income taxes in your calculations.You will need to use the present value table factors postedto answer this question.