Calculate net present value of an investment.

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The companys required rate of return is 12%. Calculate the net present value on this project and discuss whether it should be accepted.