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Smith Good Deeds Society is considering a 4-year investment opportunity with the following cash flows: Year Cash In Cash Out 0 0 650 1 140
Smith Good Deeds Society is considering a 4-year investment opportunity with the following cash flows:
| Year | Cash In | Cash Out |
| 0 | 0 | 650 |
| 1 | 140 | 25 |
| 2 | 140 | 25 |
| 3 | 140 | 25 |
| 4 | 340 | 25 |
If Smith uses an annual discount rate of 8 percent, should it pursue the investment? Show calculations to support your answer.
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