A risky $400,000 investment is expected to generate the following cash flows:

YEAR 1 2 3 4

$145,300 $175,445 $156,788 $145,000

A.) If the firm's cost of capital is 10%, should the investment be made?

B.) An alternative use for the $400,000 is a four-year U.S. Treasury bond that pays $28,000 annually and repays the $400,000 at the maturity. Management believes that the cash inflows from the risky investment are equivalent to only 75% of the certain investment, which pays 7%. Does this information alter the decision in A.

Please explain in detail and show all work. Thank you so much:-)