An investment that costs $26,500 will produce annual cash flows of $5,300 for a period of 6 years. Further, the investment has an expected salvage value of $3,150. Given a desired rate of return of 12%, what will the investment generate? Use Appendix Table 1 and Table 2. (Do not round your intermediate calculations. Round your answer to the nearest whole dollar.)
A positive net present value of $1,596.
A positive net present value of $21,790.
A negative net present value of $3,114.
A positive net present value of $26,500.
Answer A negative... View the full answer