Dax Company is considering an investment with an initial cost of $$25,000$ and net cash flows of $$8,000$ in year $1,$ $$10,000$ in year $2,$ and $$12,000$ in year $3.$ Assume Dax requires a $12\%$ rate of return on its investments.

Compute the net present value of the investment.

Determine whether the investment should be accepted or rejected on the basis of net present value.