ces The Horizon Company will invest $60,000 in a temporary project that will generate the following cash inflows for the next three years. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 Cash Flow $ 15,000 25,000 40,000 The firm will also be required to spend $10,000 to close down the project at the end of the three years. a. Compute the net present value if the cost of capital is 10 percent. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places. Net present value b. Should the investment be undertaken? OO Yes No

The Horizon Company will invest \\( \\$ 60,000 \\) in a temporary project that will generate the following cash inflows for the next three years. Use Apsendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. The firm will also be required to spend \\( \\$ 10,000 \\) to close down the project at the end of the three years. a. Compute the net present value if the cost of capital is 10 percent. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places. b. Should the investment be undertaken? Yes No \\( -1 \\mathrm{Vm} /\\left(0+\\theta^{*}\ ight) \\)