the company must advertise its new product line to gain rapid entry into the market. Its advertising campaign costs will be:

Years Annual advertising cost

1 3 $ 75,000

4 10 37,500

The company requires a 14 per cent minimum rate of return on investments.

Using the net present value method, decide whether or not Van Gogh Sports Company should add the tennis equipment to its line of products. (Ignore federal income taxes.) Round to the nearest dollar.