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Should the firm make the investment

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Management of TSC, Inc. is evaluating a new $94,000 investment with the following estimated cash flows:

Year

Cash Flow

1

$16,000

2

25,000

3

38,000

4

65,000

The firm's cost of capital is 9 percent and the project will require that the firm spend $18,000 to terminate the project. Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

The NPV of the investment is $.

Should the firm make the investment?

The firm -Select-should or should not make the investment?

Reference no: EM133058388

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