The Summit Petroleum Corporation will purchase an asset that qualifies for three-year MACRS depreciation. The cost is $250,000 and the asset will provide the following stream of earnings before depreciation and taxes for the next four years:

Year 1	$	122,000
Year 2		155,000
Year 3		58,000
Year 4		56,000

The firm is in a 30 percent tax bracket and has a cost of capital of 16 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a. Calculate the net present value