The Summitt Petroleum Corporation will purchase an asset that qualifies for three-year MACRS depreciation. The cost is $320,000 and the asset will provide the following stream of earnings before depreciation and taxes for the next four years:

Year 1$150,000

Year 2 200,000

Year 3 68,000

Year 4 66,000

The firm is in a 30 percent tax bracket and has a cost of capital of 12 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