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Jiminez Company has two investment opportunities. Both investments cost $5,700 and will provide the following net cash flows: Year Investment A Investment B 1 $

Jiminez Company has two investment opportunities. Both investments cost $5,700 and will provide the following net cash flows:

Year Investment A Investment B
1 $ 3,850 $ 3,850
2 3,850 5,020
3 3,850 2,850
4 3,850 1,340

What is the net present value of Investment A's cash flows assuming an 12% minimum rate of return? Use Appendix Table 2. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)

Multiple Choice

  • $3,850.

  • $10,320.

  • $13,097.

  • $5,994.

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