1.Use the partial chart below to determine the net present value of an asset whose initial cost is $80,000 and will generate an annual net cash flow of $12,000 for ten years. The discount rate or the cost of capital is 12%.

12%

Year 1

0.89286

Year 2

0.79719

Year 3

0.71178

Year 4

0.63552

Year 5

0.56743

Year 6

0.50663

Year 7

0.45235

Year 8

0.40388

Year 9

0.36061

Year 10

0.32197

Should the company purchase the asset?____Yes,_____No