Twelve Inch Toes Corp. will invest $175,000 in a project that will not begin to produce returns until the third year. From the end of the third year until the end of the tenth year (8 periods), the annual cash flow will be $43,000.

a. Calculate the net present value if the cost of capital is 11 percent. (Use a Financial calculator to arrive at the answers. Round the intermediate and final answer to the nearest whole dollar.) Net present value $ 4611

b. Should the project be undertaken? multiple choice Yes No