Explorer Company is considering the following investment proposal: Initial investment: Depreciable assets (straight-line) $43,200 Working capital 4,800 Operations (per year for 4 years): Cash receipts $30,000 Cash expenditures 13,200 Disinvestment: Salvage value of equipment $3,600 Recovery of working capital 4,800 Discount rate: 10 percent Additional information for interest rate of 10 percent and four time periods: Present value of $1 0.68301 Present value of an annuity of $1 3.16987 What is the net present value for the investment?

Select one:

a. $21,986

b. $5,737

c. $53,254

d. $10,991