The Summit Petroleum Corporation will purchase an asset that qualifies for three$-$year MACRS depreciation. The cost is $$430,000$ and

the asset will provide the following stream of earnings before depreciation and taxes for the next four years: Use Table $12-12$

The firm is in a $40$ percent tax bracket and has a cost of capital of $12$ percent. Use $Appendi{x}_B$ for an approximate answer but calculate

your final answer using the formula and financial calculator methods.

a$.$ Calculate the net present value.

Note: Negatlve amount should be Indlcated by a minus sign. Do not round Intermedlate calculations and round your answer to

$2$ decimal places.

Net present value

b$.$ Under the net present value method, should Summit Petroleum Corporation purchase the asset?

No

Yes Table $12-12$ Depreciation percentages $($expressed in decimals$)$