Parks Company is considering an investment proposal in which a working capital investment of $10,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, the investment's net present value is:

A) ($1,290) .
B) $2,000.
C) $4,350.
D) $1,290.

The net present value (NPV) of the investment can be calculated using the formula for NPV, which involves discounting the future cash inflows and the recovery of working capital at the end of the project's life, subtracting the initial investment. The calculation involves finding the present value of the annual cash inflows of $2,000 for six years at a 10% discount rate, plus the present value of the $10,000 working capital returned at the end of the project, and then subtracting the initial $10,000 investment. The correct NPV is $4,350, indicating a positive return on the investment.