Bridgewater Fountains is considering expanding its current line of business and has developed the following expected cash flows for the project. Should this project be accepted if the required return is 9.6 percent? Why or why not? You must calculate NPV and IRR for each problem, using the NPV and IRR functions in the Excel spreadsheet program. Provide a basic description of the answers for each problem.

Year Cash Flow

0) -$487,900

1 ) 187,200

2) 229,900

3) -27,300

4 ) 246,800