Problem 22-16

A risky $24,000 investment is expected to generate the following cash flows:

Year	1			2			3
	$	13,125		$	15,000		$	17,500

The probability of receiving each cash inflow is 80, 70, and 60 percent, respectively. If the firms cost of capital is 14 percent, should the investment be made? Use Appendix D to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

NPV: $

The investment -Select-shouldshould notItem 2 be made.