An investment that costs $24,000 will produce annual cash flows of $4,800 for a period of 6 years. Further, the investment has an expected salvage value of $2,900. Given a desired rate of return of 12%, what will the investment generate? (PV of $1and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your answer to the nearest dollar.)
A) A negative net present value of $2,796.
B) A positive net present value of $24,000.
C) A positive net present value of $20,306.
D) A positive net present value of $1,550.
Correct Answer:
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