A corporation is considering purchasing an asset. The asset will cost $12,000 (initial cash outlay). If they purchase the asset they expect the following additional net cash flows: Year 1 $5,000 $4,000 $3,000 $2,000 $1,000 Year 2 Year 3 Year 4 Year 5 Assume the corporation requires a 9% annual return on investments. Calculate the net present value(for the calculation assume the cash flow is received at the end of the year). You must include the calculation in order to receive credit. Should the business purchase the asset (use NPV rule to make the decision)?

A corporation is considering purchasing an asset. The asset will cost $12,000 (initial cash outlay). If they purchase the asset they expect the following additional net cash flows: Assume the corporation requires a 9% annual return on investments. Calculate the net present value(for the calculation assume the cash flow is received at the end of the year). You must include the calculation in order to receive credit. Should the business purchase the asset (use NPV rule to make the decision)