Sally estimated that the net return from an investment to be $14 500 per year for 13 years. The investment involves an immediate initial outlay of $63 000 and a second outlay of $25 000 after 5 years. The investment is estimated to have a residual value of $8 000 after 13 years.

a) Calculate the net present value of the investment at 18%.

b) Should the investment be accepted or rejected? Explain.

**NO EXCEL , PLEASE ANSWER BOTH PARTS**