Required information [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 investment's life. Annual Net After-Tax Cash Flows Annual Net Income Year Initial Cost and Book Value $195,000 130,000 78,000 39,000 13,000 $82,000 71,000 60,000 49,000 38,000 $17,000 19,000 21,000 23,000 25,000 Management uses a 16 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 proposal's net present value. Net present value $ 12,393