A company has to make a decision about expanding its production facilities. Research indicates that the desired expansion would require an immediate outlay of

$140,000

and an outlay of a further

$20,000

in

3

years. The net cash returns are shown below. Find the net present value of the project. According to the net present value criterion, should the expansion project be undertaken if the required rate of return is

12%?

Year 1 to Year 9	$25,000 per year
Year 10 to Year 14	$20,000 per year

The net present value of the expansion project is

$nothing.