Assume that a investor is seeking to invest:

$10, 000 today

and expect cash flows for the next 5 years of $1000, $2000, $2000, $2500, and $3000 respectively.

Assume that the required rate of return is 5% and

at the end of the project it has a salvage value of $500.

Calculate the NPV and explain its meaning.

Say whether or not the project is a good investment.