Company is considering a long-term capital investment project called ZIP. ZIP will require an investment of $120,000, and it will have a useful life of 4 years. Annual net income is expected to be: Year 1, $42,000; Year 2, $40,000; Year 3, $38,000, and Year 4, $36,000. Depreciation is computed by the straight-line method with no salvage value. The companys cost of capital is 12%.

Required: Compute the net present value for the project. (10 pts)