Baby Pal Inc wants to invest in a batch of new rubber to raise the quality of their pacifiers. The cost of the rubber is $14,000. The net cash flows resulting from the investment are as follows: Year 1: $1,500; Year 2: $7,000; Year 3: $7,000; Year 4: $900. The companys cost of capital is 14%. Compute the NPV of the project.

Group of answer choices

$2,040.26

$16,400.00

$2,400.00

($2,040.26)