Clifton Power, Inc. is making a decision about a project. It is equally as risky as the overall firm. This project has initial costs of $280,000 and cash inflows of $98,000 a year for three years. The company has a capital structure which is based on 35 percent debt, 5 percent preferred stock, and 60 percent common stock. The pre-tax cost of debt is 7 percent, the cost of preferred is 8 percent, and the cost of common stock is 10.5 percent. The company's tax rate is 34 percent. What is the projected net present value of this project under consideration? Should the company accept this project?

USE EXCEL