Karyn purchased a computer for $12,000 on January 1, 20X1. Because her new web-based business requires the latest tech, she plans to replace her computer every five years. The old one will still have a market value of $2,000 but she will donate it to charity. She plans to bill $500 per month to clients. Using a hurdle rate of 15%, what is the NPV of the investment? (Use the n=5, %=15 factor from the PV of an Annuity of $1 table = 3.352.)

Box 1: Select the best answer