Dumont, Inc. is considering a project with an initial investment of $140,000 and annual cash inflows of $24,000 per year for seven years. The company's cost of capital is 12 percent. Factors for a 12 percent interest rate for seven years are shown below:

Present Value of $1 - 0.452

Present Value of an Annuity 4.564

Based on the company's net present value (NPV) calculation, the company should:

1. Invest in the proposal since the NPV is $109,536.

2. Reject the proposal since the NPV is ($109,536)

3. Reject the proposal since the NPV is ($30,464).

4. invest in the proposal since the NPV is $30,464