The Horizon Company will invest $56,000 in a temporary project that will generate the following cash inflows for the next three years. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Year	Cash Flow
1		$	22,000
2			35,000
3			26,000

The firm will also be required to spend $13,000 to close down the project at the end of the three years.

a. Compute the net present value if the cost of capital is 12 percent.