The Horizon Company will invest $90,000 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	$28,000
2	$25,000
3	70,000

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 11 percent.

Net Present Value = __________

b. Should the investment be undertaken?

	No
	Yes