What the net present value of the proposed investment is

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

Cost of the investment $ 70,000

Annual cost savings $ 20,000

Estimated salvage value $ 8,000

Life of the project 5 years

Discount rate 12 %

Problem 1: The net present value of the proposed investment is closest to:

Reference no: EM132803971

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