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 ............... $20,000 Salvage value in 6 years .......... 20% of original cost of the equipment Repair in 4 years ................. $11,000 Cost of capital ................... 10% Life of project ................... 6 years If the new piece of equipment is purchased then the equipment currently being used can be sold at the time of purchase of the new equipment for $7,000. The net present value of this investment was calculated to be -$28,730. 

Calculate the salvage value for this piece of equipment. Do not use decimals in your answer. Ignore income tax effects. 

You will need to use the present value table factors to answer this question.