The Following Data Pertain to an Investment Proposal $$\begin{array} { | l | l |} \hline \text { Discourt Rate } & 16 \%\\\hline\end{array}$$

question 83

Multiple Choice

The following data pertain to an investment proposal:
$\begin{array}{|l|r|}\hline \text { Cost of the investment } & \$ 20,000 \\\hline \text { Annual cost savings } & \$ 5,000 \\\hline \text { Estimated Salvage Value } & \$ 1,000 \\\hline \text { Life of the Project } & 8 \text { years } \\\hline\end{array}$
$$\begin{array} { | l | l |} \hline \text { Discourt Rate } & 16 \%\\\hline\end{array}$$
What is the net present value of the proposed investment? (Ignore income taxes in this problem.) (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

• A) $1,720.
• B) $2,023.
• C) $2,154.
• D) $6,064.

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