Required information Skip to question [The following information applies to the questions displayed below.] Metro Car Washes, Inc., is reviewing an investment proposal. The initial cost as well as the estimate of the book value of the investment at the end of each year, the net after-tax cash flows for each year, and the net income for each year are presented in the following schedule. The salvage value of the investment at the end of each year is equal to its book value. There would be no salvage value at the end of the investments life. Year Initial Cost and Book Value Annual Net After-Tax Cash Flows Annual Net Income 0 $ 405,000 1 270,000 $ 170,000 $ 35,000 2 162,000 145,000 37,000 3 81,000 120,000 39,000 4 27,000 95,000 41,000 5 0 70,000 43,000 Management uses a 12 percent after-tax target rate of return for new investment proposals. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.)

3. Compute the proposals net present value. (Round intermediate calculations to the nearest whole dollar.)