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

Cost of the investment$ 35,000

Annual cost savings$ 12,000

Estimated salvage value$ 6,000

Life of the project5years

Discount rate18%

Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.

The net present value of the proposed investment is closest to:

Present Value Annuity Tables Formula: PV = [1-1/(1+1"1/ 10% 14K 11% 00000 15% OSOS n/i 1 2 3 4 5 6 7 8 13% 50 16691 2512 2.9745 3.5172 3.9975 4.4226 4.7988 51317 5.4262 9 10 11 1% 2% 09901 0.9804 19704 2.9416 29410 2.8839 3.9020 3 9077 48534 4.7135 5.7955 5,6014 6.7282 5.4720 76517 73255 8 5660 8.1622 9.4713 89026 10.9676 9.7568 11 2551 10.5753 12.1997 11 3484 13.0037 12.1062 13.8653 12.499 14.7179 13.5777 15 E 14.2919 16.3983 14.9920 172260 15.5785 180456 16514 18.8570 17.0112 1964 17.6580 20.4558 18:2922 21.243418.9139 22 0282 19.5235 22.7952 20.1230 28 5598 20.7069 242164 21283 25.0658 21 344 25 8077 22.3965 3% 4% 5% 6% 7% 8X 000 09615 09924 09034 . 030 19135 18851 18594 1 8334 1.8090 1.7833 2.8256 2.7751 2.7232 26730 26243 25771 3.7171 3.6299 3 5660 3.4651 3.3872 33121 4.5797 4.4518 43295 4.2124 4.1002 3.9927 5.4172 5.2421 5,0757 49173 4.7555 4.6229 6.2302 60021 5.7864 55824 $2993 5.2064 70197 6.7327 6.4632 62098 5.9715 5.7456 77851 7.4854 7.1078 6 8017 5 5152 6.2469 85302 8 1109 7.7217 7.3601 70236 6.7101 9.2526 8.7505 5,3064 7856 74987 2.1990 9.9540 93853 8.8533 8.38 79427 7.5361 10.6350 9956 9.3930 8.8527 8.3577 7.903 112951 10 5631 O ROSA 9.2950 8.74 2442 11.9379 11 1184 10 3797 9.7122 9.10 15595 12.5611 11 652 108375 10.1059 9.4450 8.8514 13 1651 12 1657 11.2741 10.4773 9.792 9.1216 33.7535 12.6593 116096 108276 10.0591 9.3719 14.32 1 10 12 0853 11 111 10 3356 9. 14.8775 13.5903 12.4622 11 4699 10.5940 9.8181 15.4350 14.0292 123212 11.7641 10.855 10.0160 159569144511 13 1530 12.0015110612 10.2007 16. 1456 IR 46 1234 11:2723 10:2711 16.9355 15.2470 13.796 12.5504 11.4693 10.5258 17.4131 15.6221 14 099 12.7634 11.6536 10.6748 17 8760 15982 14 3752 130032 118258 10 8100 18.5270 10 5290 14.6430 13 2105 11 957 10.9352 18.7641 16. 148931 140 12181110511 19.15S 16 9837 15.1431 33.5907 12.2777 11 1584 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 14 15 9% 00174 17591 25313 3.2397 38997 4.4859 5.0320 5.5348 5.9952 6.4177 68052 7.1607 7.450 7.7862 3.0607 89226 35436 8.7556 01 91285 9.2922 94424 9.5802 9.7066 93226 9.9290 100200 101161 10.1993 10.2737 09091 17355 24869 3.3699 3.7908 43553 4.8584 5.3349 5.7590 6.1445 64951 68137 7.1034 73567 7606 78237 0314 3.2014 83549 B5136 8.6487 7715 12% 0.5920 1.6901 2015 3.0973 3.6048 4.1114 4569 4.9676 5:3282 5.6502 5.9977 6.1901 5.4235 56789 6.8109 6.9740 7.196 7.2497 7165 7.4694 7.5620 7.6466 7.784 7.7843 7.1481 7.8957 79420 7.9844 8.02.13 8.0552 17125 24437 3.1024 3.6959 42305 7122 5.1461 5.5370 5.8892 6.2005 6.4924 6.7499 5.9819 7.1909 7.3792 7.540 7.7016 7.8393 7.9633 0751 1757 3.2664 3.3481 4217 11.4833 8.5478 5016 5503 3.6930 16257 22832 28550 3.3522 3.7845 41604 44873 4.7716 50188 5.2337 5:4206 5.5831 5.7245 5.8474 5.9542 0.2772 1.6467 2.3216 2.9137 3:4331 3.8587 4.2885 4.6389 09054 5.2161 5.4527 5.6603 5,5424 6.0021 61422 6.2651 63729 6.4674 65504 6.6291 6.6870 6.7429 6.7921 0,3353 6.8729 6.9062 6.9352 6.9607 69830 70027 59176 51210 62025 6.4624 6099 16 12 18 19 20 22 23 24 25 26 27 28 8.9547 90720 9.1609 9 2372 6.8390 098 70248 7 1016 71895 7.2297 72829 23300 73717 74036 7:4412 7.4701 7.4957 6. 1280 6. 1982 62698 6.3125 6.3587 6398 6.4338 64641 6.4906 65135 65355 6.5509 6.5660 9.3096 9.4269 30