An investment with total costs of $12,000 will generate total revenues of $14,000 for one year. Use Appendix B to answer the questions. Use a minus sign to enter negative values, if any. Round your answers to the nearest dollar.
If funds cost8 percent, the NPV is $_____
What would be your advice to management?
The investment _____ be made. Would your answers be different if the cost of capital is 18 percent?
If funds cost 18 percent, the NPV is $______
The investment _____ be made.