I feel stressed reading this question as it has no context but the question is asking for your opinion. there really is no wrong answer
You should read the whole application before you start writing on it.
Answer:
$30,947.92
Explanation:
The computation of the net present value is shown below:
= Present value of all yearly cash inflows after applying discount factor + - initial investment
where,
The Initial investment is $74,000
All yearly cash flows would be
= Annual cost savings × PVIFA for 9 years at 8%
= $16,800 × 6.2469
= $104,947.92
Refer to the PVIFA table
So, the net present value is
= $104,947.92 - $74,000
= $30,947.92