Assume that a company has provided the following information regarding a capital investment opportunity:

Initial investment in equipment	$ 160,000
Initial investment in working capital	$ 25,000
Estimated annual sales	$ 150,000
Estimated annual cash operating expenses	$ 72,000

Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided.

The equipment has a four-year useful life and no salvage value. The working capital will be released at the end of the project. The companys tax rate is 30%. Assuming a discount rate of 14%, the net present value of this investment is closest to:

Multiple Choice

$17,824.

$(1,376).

$10,006.

$23,806.