A risky $345,000 investment is expected to generate the following cash flows:

Year	1			2			3			4
	$	121,000		$	176,145		$	158,196		$	139,000

1. If the firms cost of capital is 12 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-shouldshould notItem 2 be made.

1. An alternative use for the $345,000 is a four-year U.S. Treasury bond that pays $20,700 annually and repays the $345,000 at maturity. Management believes that the cash inflows from the risky investment are equivalent to only 80 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-shouldshould notItem 4 be made.