Baker Corporation is considering an investment opportunity with expected net cash inflows of

$300,000 per year for four years. At the end of Year 4, the residual value of the investment is expected to be $21,000.

The company uses a discount rate of 14%, and the initial investment is $580,000.

Calculate the NPV of the investment.

Present value of $1:

	10%	12%	14%	16%
1	0.909	0.893	0.877	0.862
2	0.826	0.797	0.769	0.743
3	0.751	0.712	0.675	0.641
4	0.683	0.636	0.592	0.552
5	0.621	0.567	0.519	0.476

Present value of Ordinary Annuity of $1

	10%	12%	14%	16%
1	0.909	0.893	0.877	0.862
2	1.736	1.690	1.647	1.605
3	2.487	2.402	2.322	2.246
4	3.170	3.037	2.914	2.798
5	3.791	3.605	3.433	3.274