(Ignore income taxes in this problem.) The following data pertain to an investment proposal: Cost of the investment........................................... $20,000 Annual cost savings.............................................. $5,000 Estimated salvage value......................................... $1,000 Life of the project................................................... 8 years Discount rate....................................................... 16% The net present value of the proposed investment is: a. $1,720 b. $6,064 c. $2,154 d. $2,025