Smith and Company are considering investing in a project to streamline their production process. The cash flows are shown below. The required rate of return for projects of this class is 8%.

Time 0 1 2 3 4 5 6

Cash flow -650,000 95,000 85,000 25,000 35,000 25,000 10,000

Use only the NPV decision rule to evaluate this project.

Should the project be accepted or rejected? Calculate the NPV.