(Ignore income taxes in this problem.) The following data pertain to an investment proposal:

Cost of the investment $40,000 Annual cost savings $11,000 Estimated salvage value $5,000 Life of the project 5 years Discount rate 10%

Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables.

The net present value of the proposed investment is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

$4,806 $1,701 $3,105 $24,000