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: $

   The investment should be made.

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: $

   The investment should not be made.