You are considering investing in a venture to build a new app for Apple handheld devices. You are going to have to buy equipment which you believe will cost roughly $2,000. You expect the app will generate the following cash flows. If you expect an appropriate discount rate to be 10%, should you undertake this venture?

Purch. Equip. 1 (2,000) YrYr 12 1 5 Yr 3 1 2,000 Yr Yr 4 1 (2,000) 100 0 2,000 1