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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
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%, what will the investment generate? Use Appendix Table 1 and Table 2. (Do not round your intermediate calculations. Round your answer to the nearest whole dollar.)
Multiple Choice
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A negative net present value of $2,077.
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A positive net present value of $2,077.
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A positive net present value of $557.
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A positive net present value of $22,077.
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