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

Cost of the investment	$	48,000
Annual cost savings	$	14,000
Estimated salvage value	$	4,000
Life of the project		5	years
Discount rate		10	%

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

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

Multiple Choice

• $5,074

• $2,484

• $7,558

• $30,000