Tinto Company is planning to invest in a project at a cost of $135,000. This project has the following expected cash flows over its three-year life: Year 1, $45,000; Year 2, $52,000; and Year 3, $78,000. Management requires a 10% rate of return on its investments. Compute the net present value of this investment. Use PV tables that are in a separate file or see Appendix B of your textbook.

Year	Net Cash Flows	Present Value of 1 at 10%	Present Value of Net Cash Flows
1
2
3
Total	$175,000
Less initial investment
= Net present value

PV table:

1 .... 0.8696

2 .... 0.7561

3 .... 0.6575