What the investment will generate a

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Problem 1: An investment that costs $25,000 will produce annual cash flows of $5,000 for a period of 6 years. Given a desired rate of return of 12%, the investment will generate a (round your answer to the nearest whole dollar):

a. Positive net present value of $20,557.
b. Negative net present value of $4,443.
c. Positive net present value of $5,000.
d. Negative net present value of $25,000.

Reference no: EM132806819

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