Answer:
-$1,000
Explanation:
A firm has an initial investment of $5,000 when evaluating an investment proposal
The cash flow is presently valued at $4,000
Therefore, the net present value can be calculated as follows
Net present value= present value of cash flow-initial investment
= $4,000-$5,000
= -$1,000
Hence the net present value of the investment is -$1,000
