Kirby Village Golf Course is considering the purchase of new equipment that will cost $1,250,000 if purchased today and generate the following cash disbursements and receipts. Should Kirby pursue the investment if the cost of capital is 8 percent? Why?

Year	Cash Receipts	Cash Disbursements	Net Cash Flow
1	950,000	500,000	450,000
2	925,000	475,000	450,000
3	800,000	450,000	350,000
4	675,000	430,000	245,000