The project analysis shows that project start-up costs will be relatively high at $120,000 because additional staff will need to be hired to provide care in a nearby public housing project. Revenue generation will be slow because these clients will have to be qualified for Medicare, Medicaid or veteran’s benefits. The cash flow analysis in the project is as follows:

Current Year Start-up Year 1 Year 2 Year 3 Year 4 120,000 (30,000) (20,000) 15,000 25,000 Assuming a background inflation rate of 3 percent, estimate the net present value of the proposed project and recommend either accepting or rejecting the project based on your analysis.