The law firm of Bushmaster, Cobra and Asp is considering investing in a complete small business computer system.

The initial investment will be $35,000 and the hardware, which will be used for 8 years with a salvage value of $5,000, and software of $20,000. In each of years 3 and 5, $5,000 will be spent for additional software upgrades. The computer system is expected to provide additional revenue of $15,000 per year for the next 8 years, and to reduce expenses by $10,000 per year for the same period. The firm's cost of capital is 12 percent.

Based on a net present value analysis, should this investment be accepted?