Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,000 at the end of each of the next three years. The opportunity requires an initial investment of $1,000 plus an additional investment at the end of the second year of $5,000. What is the NPV of this opportunity if the cost of capital is 2% per year? Should Marian take it?

Investment year 0 Investment year 2 Cash flow years 1-3 Number of periods (years) Cost of capital \begin{tabular}{|lr|} \hline $ & 1,000 \\ \hline $ & 5,000 \\ \hline $ & 4,000 \\ \hline & 3 \\ \hline & 2% \\ \hline \end{tabular} PV of cash inflows PV cash outflows NPV of investment Take opportunity (Yes/No) \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular}