An investment that costs $25,500 will produce annual cash flows of $5100 for a period of 6 years. Further, the investment has an expected salvage value of $3050. Given a desired rate of return of 12%, what will the investment generate? Use Appendix Table 1 and Table 2. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)
A. A negative net present value of $2987.
B. A positive net present value of $25,500.
C. A positive net present value of $1545.
D. A positive net present value of $20,968.
Answer: A
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