The financial manager at Genesis Co is looking into the purchase of an apartment complex for $150,000. Net after-tax cash flows are expected to be $60,000 for each of the next 2 years, then drop to $50,000 for two year. Genesis' required rate of return is 9% on projects of this nature. After four years, Genesis Co. expects to sell the property for after tax proceeds of $2,000 at fifth year.

a) What is the NPV on this project? Show your work.

b) Suppose the required rate of return on Genesis Co is 15%, will the company invest this project? Why or why not? Explain.