MLo, Inc. can convert its disbursements from check to ACH for an upfront investment of $20,000. Historically, MLo has 5,000 disbursements per year. If ACH transfers are $0.20 cheaper than checks, what is the NPV of switching to ACH? Assume a discount rate of 10% and that the historical disbursement volume continues in perpetuity.

Select one:

a.

-19,000

b.

-$10,000

c.

$1,000

d.

$10,000