An investment that costs $40,000 will produce annual cash flows of $12,000 for a period of 4 years. Given a desired rate of return of 10%, what will the investment generate? Use Appendix Table 2. (Do not round your intermediate calculations. Round your answer to nearest whole dollar.)

Multiple Choice

• A positive net present value of $38,038.

• A negative net present value of $38,038.

• A positive net present value of $1,962.

• A negative net present value of $1,962.