On June 30, Motorsports inc sold an ATV to a customer for $6,450. The ATV had a cost basis of $5,200 to Motorsports. The customer is required to make a $430 down payment and to pay the $6,020 balance in equal $430 payments over the next 14 months on the last day of each month, Motorsports uses the installment method of revenue recognition.

What is Motorsports oppurtunity cost over the 14 months assuming an annual 4% cost of borrowing?

The present value factor for 14 periods at 4% is 10.56312

(A) $6,020

(B) $4,542

(C) $1,477

(D) $ 430