An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 14 %? Why or why not? 

Year          Cash Flow

0                 -$30,000

1                  8,400

2                 13,900

3                 18,600

 Katie's Cafe is considering the addition of a new refrigeration system that will cut annual food costs by $15,001. The system will cost $36,000 to purchase and install. This system is expected to have a 3-year life and will be depreciated to zero using straight-line depreciation. What is the annual net income for this project if the tax rate is 34%?