The Summit Petroleum Corporation will purchase an asset that qualifies for three$-$year MACRS depreciation. The cost is $$140,000$ and the asset will provide the following stream of earnings before depreciation and taxes for the next four years: Use Table $12-12.$

Year $1$ $ $60,000$

Year $274,000$

Year $340,000$

Year $431,000$

The firm is in a $30$ percent tax bracket and has a cost of capital of $6$ percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Calculate the net present value.

Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to $2$ decimal places.

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

multiple choice

Yes

No