A risky $335,000 investment is expected to generate the following cash flows:

Year	1			2			3			4
	$	149,500		$	168,980		$	161,690		$	144,500

1. If the firms cost of capital is 8 percent, should the investment be made? Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

   NPV: $ ___

   The investment -Select-(should, should not) Item 2 be made.

2. An alternative use for the $335,000 is a four-year U.S. Treasury bond that pays $20,100 annually and repays the $335,000 at maturity. Management believes that the cash inflows from the risky investment are equivalent to only 85 percent of the certain investment, which pays 6 percent. Should the investment be made? Use Appendix B to answer the question. Do not round other intermediate calculations. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

   NPV: $ ____

   The investment -Select-(should, should not) Item 4 be made.