Aaron Heath is seeking part-time employment while he attends school. He is considering purchasing technical equipment that will enable him to start a small training services company that will offer tutorial services over the Internet. Aaron expects demand for the service to grow rapidly in the first two years of operation as customers learn about the availability of the Internet assistance. Thereafter, he expects demand to stabilize. The following table presents the expected cash flows:

Year of
Operation	Cash Inflow			Cash Outflow
Year 1	$	13,900		$	9,300
Year 2		19,000			11,800
Year 3		22,000			12,800
Year 4		22,000			12,800

enable him to start a small training services company that will otter tutorlal services over the internet. Aaron expects demand tor the service to grow rapidly in the first two years of operation as customers learn about the avallability of the Internet assistance. Thereafter, he expects demand to stabilize. The following table presents the expected cash flows: In addition to these cash flows, Aaron expects to pay $21,700 for the equipment. He also expects to pay $3,100 for a major overhaul and updating of the equipment at the end of the second year of operation. The equipment is expected to have a $1.700 salvage value and a four year useful Ilfe. Aaron desires to eam a rate of return of 8 percent. (PV of \$1 and PVA of \$11) (Use appropriate factor(s) from the tobles provided.) Required a. Calculate the net present value of the investment opportunity. (Negative amount should be indicated by a minus sign. Round Intermedlate calculations and final answer to 2 decimal places.) b. Indicate whether the investment opportunity is expected to earn a retum that is above or below the clesired rate of return and whelther il should be accepled