Your firms Finance team asked you to evaluate an investment opportunity. The up-front cost is $40,000 (to be incurred immediately, year 0). The first cash flow (year 1) is expected to be $4,000. It is expected to remain at that level for twenty years in total, after which the project ends. The last year with operations is expected to be year 20. In year 21, there will be cash flows from asset disposals, liquidation of inventories, cleanup costs, etc., with a net cash flow of $6,000. The cost of capital appropriate for this investment opportunity is 12.5%.

Is this a good investment? Show working.