Posted by **Pi** on Saturday, December 8, 2012 at 4:33pm.

1. A manager is considering the following investment:

Initial capital investment $180,000

Estimated useful life 3 years

Estimated disposal value in 3 years 0

Estimated annual savings in cash operating costs $80,000

Minimum desired rate of return 10%

The net present value of the investment is ________.

A) $(123,652)

B) $18,952

C) $60,000

D) $198,952

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