An investment

Jakob is contemplating the purchase of a special van in which he can travel and service plants in remote areas. He estimates the following information for the potential purchase.

Machine
Original outlay for purchase of the space (beginning of Year 1)	76 000
Expected net cash inflow Year 1	12 000
Year 2	13 000
Year 3	14 000
Year 4	15 000
Estimate residual value	17 000

Jakob thinks the cost of capital to be 7% and uses straight-line depreciation. He has sufficient funds to meet all capital expenditure requirements.

Required

1. Calculate the net present value for the investment and state (with a justification of your answer) whether it should be accepted.