ABC company is considering acquiring XYZ company at a cost of 1.25 million. ABC's management estimates that the acquisition will provide their firm with cash flows of 260,000, 268,000, 569,000 and 690,000 over the next four years, respectively. The acquisition is considered risky and thus ABC's management requires a minimum of 18% rate of return for the project. Based on 18% required rate of return, the acquisition is expected to add_____ of value to the firm and therefore ABC _______ pursue the acquisition.

1. -134,982; should not

2. 134,982; should

3. -55,696; should not

4. 55,696; should