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

Cost of the investment	$32,000
Annual cost savings	$9,000
Estimated salvage value	$3,000
Life of the project	5 years
Discount rate	10%

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table.

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.)

$3,982

$2,119

$1,863

$20,000