Lakeside Marina is considering expanding its seasonal docking facilities. Construction would take place in year one, with costs of $145,000 paid at the start of the first year, and some additional landscaping costs of $3,500 paid at the start of the second year. The docks would have a useful life to the end of year 15, with no residual value. The increased capacity should generate increased annual profits of $15,000 at the end of years 2 through 5, and $20,000 at the end of years 6 through 15. If Lakesides cost of capital is 6% compounded annually,

a) What is the NPV of the project? (Do not round your intermediate calculations. Round your final answer to 2 decimal places.) NPV $

b) Should Lakeside undertake the expansion? multiple choice Yes No