A company is considering an investment proposal that will require the purchase of $$80,000$ of machinery and an initial investment in working capital of $$40,000.$ The proposal is expected to yield cash flows and income $($before depreciation and taxes$)$ of $$48,000$ annually for four years. Depreciation is to be taken for tax purposes using the straight$-$line method and no salvage value. The investment in working capital will be recovered at the end of four years. The company will not accept a proposal that will not earn at least $15\%.$ The present value of an annuity of $$1$ for four periods at $15\%$ is $2\mathrm{.}85498$; the present value of $$1$ due in four periods at $15\%$ is $0\mathrm{.}57175.$ The tax rate in effect is $40\%.$

Determine whether the project is acceptable using the net present value method.