29- Randel Company is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial investment

$45,110

Operation

Year 1

20,640

Year 2

30,000

Year 3

10,000

Salvage value

0

The present value factors of $1 for different rates of return are as follows:

Present Value of $1

Period

12%

14%

16%

18%

1

0.89286

0.87719

0.86207

0.84746

2

0.79719

0.76947

0.74316

0.71818

3

0.71178

0.67497

0.64066

0.60863

4

0.63552

0.59208

0.55229

0.51579

Given a discount rate of 14 percent, determine the net present value of the investment proposal.

$45,110

$5,618

$40,000

$2,829