The firm should not purchase the press, because it earns $2,000/10% = $20,000. But the press costs

$10,000 to purchase and eliminates $1,500/10% = $15,000 of profits from the screw machines. The total cost of the press, including the $15,000 in opportunity costs, is $25,000. The project’s net present value is

$20,000 − $25,000 = −$5,000.