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 .......... 30% of original cost of the equipment

Repair in 4 years ................. $21,000

Cost of capital ................... 10%

Life of project ................... 6 years

The net present value of this investment was calculated to be $22,924. Calculate the salvage value for this piece of equipment. Ignore income tax effects. You will need to use the present value table factors to answer this question.