Benton music is considering investing $675,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $95,000 per year for the next nine years. Assuming that Benton Music uses a 10% hurdle rate, what is the net present value (NPV) of the studios investment? Is this a favorable investment?

Round answers to the nearest whole dollar. Use parenthesis or a minus signs for a negative net present value.

Since the NPV is (negative/positive), the studio investment (does not provide/provides) Bentons Musics minimum repquired rate of return. Therefore, the investment is (favorable/unfavorable).

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