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

Cost of the investment	$ 68,000
Annual cost savings	$ 20,000
Estimated salvage value	$ 6,000
Life of the project	5	years
Discount rate	13%

Click here to view Exhibit 7B-1 and Exhibit 7B-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

$5,598

$2,340

$3,258

$42,000