7. Kafka, Inc., estimates that it can generate $4,600 per year in additional cash inflows for the next five years if it modernizes its equipment at a cost of $15,000. The company’s minimum desired rate of return is 10%. Using the present value factors in your text (Tables 6-4 and 6-5), the net present value of the project is (rounded)

a. $(12,562).

b. ^ $(2,438).

c. ' $2,438.

d. $8,000.

e. $23,000.