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Management of TSC, Inc. is evaluating a new $97,000 investment with the following estimated cash flows: Year Cash Flow 1 $ 15,000 2 22,000 3

Management of TSC, Inc. is evaluating a new $97,000 investment with the following estimated cash flows:

Year Cash Flow
1 $ 15,000
2 22,000
3 38,000
4 54,000

The firms cost of capital is 10 percent and the project will require that the firm spend $14,000 to terminate the project. Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

The NPV of the investment is $ .

Should the firm make the investment?

The firm -Select-shouldshould notItem 2 make the investment.

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