A risky $380,000 investment is expected to generate the following cash flows:

Year	1			2			3			4
	$	107,500		$	160,155		$	165,906		$	138,100

1. If the firms cost of capital is 10 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: $___________?
2. An alternative use for the $380,000 is a four-year U.S. Treasury bond that pays $26,600 annually and repays the $380,000 at maturity. Management believes that the cash inflows from the risky investment are equivalent to only 70 percent of the certain investment, which pays 7 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: $___________?

Interest Factors for the Present Value of One Dollar Time Period (e.gr Year % 2% 3% 4% 5% 6% 7% 8% % 10% 12% 14% 15% 6% 18%,20% 24% 28% 990 980 71 962 952 943 935 926 917909 893 87 870 862 87 833806 781 980 961943 925907.890 873,857842 826 77 769 756 43 718 694 650 610 71942 91589864 840 816794 772 751712675658 64160959524 477 1961924 ,889 855 823 792 763 735 708 .683636 592 572 552 516 482 423 373 1951906 863 822 784747713681 650 621567519497476 437402 341 291 3 2rm 4 5 6 1942 1888 838 790 746 1705 666 630 56 564 507456 432 410 30 335275 1933 871 83 760 711 .665 .623 583 547513 .452 400 36 354 314 279 222 1923 1853 789 731 67.627 582 540 502 467 404 351 327 305 266 233 179 914 837766703 645592 544 500 460 424361308 284 263 1226 194 144 905 820 144 676 614 558 508 463 422386 322 20 247 227 191 162 16 227 178 139 108 .085 12345 6789m nuBUS 6DB9% ii 237 215 162 195 1896 804 1887 78 1879 773 870 758 1.861743 722 650 701 681 661577 642 555 * 5w 2 Bmw mwwmwww 55 527 45 429 388 350 287 557497444 37 356 39 257 530469 415368 326 290 229 388 340 299 263 205 .481 .47 362 315 275239 183 182 160 140 163 141 23 145 125 108 116 099 084 135094066 112 076 1052 098 061 .040 .078 049 032 065 040 .025 17 1853 728 .623 534 1.458 394 844 714 .605513436 371 1.836 700 587494 .416 350 828 686 570 475396 1396 331 1.820 673 554 456 377312 339 1292 37 270 296 .250 276 1232 258 .215 252 231 212 194 178 .218 198 180 .164 .149 163 146 130 116 104 123 107 093 .07] 054 108 093 080 .060 .045 .095 .081069 .051,038 .083 .070 .060 .043 .03] 073 .06] 051 .037026 032 .026 021 017 014 .019 015 .012 .009 007 25 | 30 780 .610 .478 375 .295 233 742 552 412 308 .231 174 184 146 16 131 099 .075 .092 057 059 033 038 .030 024 2016 .010 .005 002 020 015 2012 007 .004 002 001 Interest Factors for the Present Value of One Dollar Time Period (e.gr Year % 2% 3% 4% 5% 6% 7% 8% % 10% 12% 14% 15% 6% 18%,20% 24% 28% 990 980 71 962 952 943 935 926 917909 893 87 870 862 87 833806 781 980 961943 925907.890 873,857842 826 77 769 756 43 718 694 650 610 71942 91589864 840 816794 772 751712675658 64160959524 477 1961924 ,889 855 823 792 763 735 708 .683636 592 572 552 516 482 423 373 1951906 863 822 784747713681 650 621567519497476 437402 341 291 3 2rm 4 5 6 1942 1888 838 790 746 1705 666 630 56 564 507456 432 410 30 335275 1933 871 83 760 711 .665 .623 583 547513 .452 400 36 354 314 279 222 1923 1853 789 731 67.627 582 540 502 467 404 351 327 305 266 233 179 914 837766703 645592 544 500 460 424361308 284 263 1226 194 144 905 820 144 676 614 558 508 463 422386 322 20 247 227 191 162 16 227 178 139 108 .085 12345 6789m nuBUS 6DB9% ii 237 215 162 195 1896 804 1887 78 1879 773 870 758 1.861743 722 650 701 681 661577 642 555 * 5w 2 Bmw mwwmwww 55 527 45 429 388 350 287 557497444 37 356 39 257 530469 415368 326 290 229 388 340 299 263 205 .481 .47 362 315 275239 183 182 160 140 163 141 23 145 125 108 116 099 084 135094066 112 076 1052 098 061 .040 .078 049 032 065 040 .025 17 1853 728 .623 534 1.458 394 844 714 .605513436 371 1.836 700 587494 .416 350 828 686 570 475396 1396 331 1.820 673 554 456 377312 339 1292 37 270 296 .250 276 1232 258 .215 252 231 212 194 178 .218 198 180 .164 .149 163 146 130 116 104 123 107 093 .07] 054 108 093 080 .060 .045 .095 .081069 .051,038 .083 .070 .060 .043 .03] 073 .06] 051 .037026 032 .026 021 017 014 .019 015 .012 .009 007 25 | 30 780 .610 .478 375 .295 233 742 552 412 308 .231 174 184 146 16 131 099 .075 .092 057 059 033 038 .030 024 2016 .010 .005 002 020 015 2012 007 .004 002 001