Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows:

End of Year Investment A Investment B

1 $ 8,000 $ 0

2 8,000 0

3 8,000 24,000

The present value factors of $1 each year at 15% are:

1 0.8696

2 0.7561

3 0.6575

The present value of an annuity of $1 for 3 years at 15% is 2.2832. The net present value (rounded to the nearest whole dollar) of Investment A is:

Select one:

a.$9,000

b.$(20,549)

c.$3,266

d.$18,266

e.$(15,000)