A corporation is considering purchasing a new plant asset. The asset will cost $30,000. The corporation requires a 10% return on similar investments. The corporation plans to use the asset for 4 years and then sell it for the salvage value. The estimated salvage value of the asset in 4 years is $5,000. The corporation estimates that if purchased the new asset will provide additional net cash flows of $9,000 each year for 4 years (assume the cash flows occur at the end of the year):

Calculate the net present value

(you must include the calculation in order to receive credit)

Should the business purchase the asset?