Question - An investment that costs $26,000 will produce annual cash flows of $5,200 for a period of 6 years. Further, the investment has an expected salvage value of $3,100. Given a desired rate of return of 12%, what will the investment generate?
a. A positive net present value of $1,571.
b. A positive net present value of $21,379.
c. A positive net present value of $26,000.
d. A negative net present value of $3,050.