4. Somozas Manufacturing Company is considering the following investment proposal: Original investment $12,500 Operations (per year for four years): Cash receipts Cash expenditures $10,000 5,500 Salvage value of equipment after four years $ 1,000 Discount rate 12% The firm uses the straight-line method of depreciation with no mid-year convention. What is the net present value for the investment, assuming no taxes are paid? A. $500 B. $1,500 C. $12,500 D. $1,802.50 20% 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 78% 78% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 10 PV of Annuity of $1 2 3 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192