West Island Industries is considering a project which has the following cash flows:

Year Cash Flow

$0=?$

$1=$ $$4,000$

$2=4,000$

$3=3,000$

$4=1,500$

The project has a payback period of $2\mathrm{.}5$ years. The firm$$s cost of capital is $12$ percent.

a$)$ What is the project$$s net present value $($NPV$)?$

b$)$ What does the NPV rule advise regarding this investment opportunity?