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The Horizon Company will invest $58,000 in a temporary project that will generate the following cash inflows for the next three years Use Appendix B

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The Horizon Company will invest $58,000 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 $ 24,000 37,000 28,000 The firm will also be required to spend $14,000 to close down the project at the end of the three years a. Compute the net present value if the cost of capital is 9 percent. (Negative amount indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. Should the investment be undertaken? O Yes O No

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