Question - Carter Company is trying to determine the value of an investment of $10,000 to switch from a manual to an automated cash disbursement system. It makes 5000 disbursements per year. Each check costs $0.75 on a manual basis and would drop to $0.07 if the switch is made. The company has an opportunity cost of 6%. Using this information, what would be the investment's NPV?
a. $45,000
b. $52,250
c. $58,000
d. $65,000