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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
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
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$5,074
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$2,484
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$7,558
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$30,000
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