Sunrise Inc. is considering a capital investment proposal that costs $$217,500$ and has an

estimated life of $4$ years and no residual value. The estimated net cash flows are as follows:

$)$

$1$

$2$

$3$

$4$

Net Cash Flow

$$97,500$

$80,000$

$60,000$

$40,000$

The minimum desired rate of return for net present value analysis is $10\%.$ The factors for the

present value of $$1$ at the compound interest rate of $10\%$ for $1,2,3,$ and $4$ years are $0\mathrm{.}909,$

$0\mathrm{.}826,0\mathrm{.}751,$ and $0\mathrm{.}683,$ respectively. Determine the net present value. Round interim answers

to the nearest dollar.

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