Exhibit 8-2
Liam Company Has Two Independent Investment Opportunities,each Requiring

Exhibit 8-2
Liam Company has two independent investment opportunities,each requiring an initial investment of $130,000.The company's required rate of return is 12 percent.The cash inflows for each investment are provided below.
$$\begin{array} { c c c } & \text { InvestmentA } & \text { Investment B } \\\text { Year 1 } & \$ 70,000 & \$ 10,000 \\\text { Year 2 } & 50,000 & 30,000 \\\text { Year 3 } & 30,000 & 50,000 \\\text { Year } 4 & 10,000 & 70,000 \\\text { Total inflows } & \$ 160,000 & \$ 160,000\end{array}$$ $\begin{array}{l}&\text { Factors: Present Value of } \$ 1 & \text { Factors: Present Value of an Annuity } \\\end{array}$
$$\begin{array}{l}\begin{array} { c c c c } ( r = 12 \% ) &&{ ( r = 12 \% ) } \\\hline \text { Year 0 } & 1.0000 & & \\\text { Year 1 } & 0.8929 & \text { Year 1 } & 0.8929 \\\text { Year 2 } & 0.7972 & \text { Year 2 } & 1.6901 \\\text { Year 3 } & 0.7118 & \text { Year 3 } & 2.4018 \\\text { Year 4 } & 0.6355 & \text { Year 4 } & 3.0373\end{array}\end{array}$$
-Refer to Exhibit 8-2.What is the net present value of Investment B (rounded to the nearest dollar) ?

A) $30,000
B) ($17,080)
C) $17,080
D) ($15,600)
E) None of the answer choices is correct.