Adrian Motors is considering the addition of a paint and body shop to the dealership. Construction of a building and the purchase of necessary equipment is estimated to cost $800,000, and both the building and equipment will be depreciated over 10 years using the straight-line method. The building and equipment have zero estimated residual value at the end of ten years. The companys required rate of return for this project is 12%. Net income related each year of the investment is as follows:

Revenue		$650,000
Expenses
Material Cost	$70,000
Labor	$150,000
Depreciation	$80,000
Other	$10,000	$310,000
Income before taxes		$340,000
Income tax expense (40%)		$136,000
Net Income		$204,000

Determine the net present value of the investment. Should the company make the investment?