An investment that costs $35,000 will produce annual cash flows of $11,700 for a period of 4 years. Given a desired rate of return of 10%, what will the investment generate? Use Appendix Table 2. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)
A. A positive net present value of $2087.
B. A negative net present value of $37,087.
C. A negative net present value of $2087.
D. A positive net present value of $37,087.
Answer: A
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