A risky $405,000 investment is expected to generate the following cash flows:

Year	1			2			3			4
	$	147,200		$	178,585		$	161,680		$	147,800

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.

2. An alternative use for the $405,000 is a four-year U.S. Treasury bond that pays $36,450 annually and repays the $405,000 at maturity. Management believes that the cash inflows from the risky investment are equivalent to only 75 percent of the certain investment, which pays 9 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.