2.16 In 2019, Hoffman Corporation is considering investing in a new five-year project that will require an initial cash outlay of $650,000. When the project is undertaken, Hoffman will sell old equipment with an initial cost of $400,000 and accumulated depreciation of $275,000 for $50,000 cash. Hoffman management anticipates that the new project will generate $280,000 of cash revenue and require $88,000 of cash expenses in each of the five years. Depreciation associated with the project is calculated uniformly. Hoffman has a 15 percent cost of capital and a 20 percent tax rate. Calculate the project's net present value. Should Hoffman undertake the project? Why