Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $11,800 annually for four years. If Park Co. requires a 15% return on its investments.

1-a

What is the net present value of this investment?

1-b

Based on NPV alone, should Park Co. invest?

	Yes
	No

Cash Flow Select Chart Annual cash flow Present Value of an Annuity of 1 Present value of cash inflows Net present value Amount x PV Factor Present Value 4.7250 148,838 31,500 x 11,800