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An investment that costs $50,000 will return $15,000 operating cash flows per year for five years. Determine the net present value of the investment if

An investment that costs $50,000 will return $15,000 operating cash flows per year for five years. Determine the net present value of the investment if the required rate of return is 14 percent. Should the investment be undertaken?

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No, the accounting return is less than 14%.

Yes, the profit is $25,000.

No, the net present value is negative at $11,045.

Yes, the net present value is positive at $1,496.505,000.

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