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Given the following information and assuming straight-line depreciation to zero, what is the NPV of this project? Initial investement = $80,000; cost savings = $30,000

Given the following information and assuming straight-line depreciation to zero, what is the NPV of this project? Initial investement = $80,000; cost savings = $30,000 per year; life =4years; salvage value = $10,000 in year 4; tax rate = 35%; discount rate = 12%. 1. -$3,249 2. -$1,887 3. $645 4. $2,119 5. $4,621

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