The purchase of new office furniture for a boardroom has caused conflict between two factions within a company. One faction argues that the company should buy modern furniture, which will cost £12 000, and can be scrapped (replaced with zero salvage costs) in six years’ time. The other favours the purchase of antique furniture which costs £30 000, but can be sold for £30 000 in six years’ time. The modern furniture will cost £500 in maintenance and the antique £1000. You have been asked to arbitrate the decision and resolve the conflict using financial methods (calculate the net present value of each scheme, using the company discount rate of 12 per cent).