Caterpillar Inc. (CAT) is evaluating a proposed capital budgeting project that will require an initial investment of $196,000. The project is expected to generate the following net cash flows:

Year	Cash Flow
1	$63,800
2	$71,600
3	$59,450
4	$87,800

Assume the desired rate of return on a project of this type is 10.5%. What is the net present value (NPV) of this project?

Caterpillar Inc. has enough capital to fund the project, and the project is not competing for funding with other projects. Should Caterpillar Inc. accept or reject this project?