An investment that costs $20,000 will produce annual cash flows of $5,000 for a period of 6 years. Further, the investment has an expected salvage value of $3,000. Given a desired rate of return of 12%, the investment will generate a (Do not round your PV factors and intermediate calculations. Round your answer to the nearest whole dollar.) :
A) positive net present value of $2,077.
B) negative net present value of $2,077.
C) positive net present value of $22,077.
D) positive net present value of $557.
Correct Answer:
Verified
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