LakeFront Company is considering investing in a new dock that will cost $560,000. The company expects to use the dock for 5 years, after which it will be sold for $300,000. LakeFront anticipates annual cash flows of $110,000 resulting from the new dock. The company's borrowing rate is 8%, while its cost of capital is 10%.

1. Calculate the net present value of the dock. (Use the above table.)
2. Indicate whether LakeFront should accept the project.