The Kellogg Company has to make a decision about expanding its production facilities. Research indicates that the desired expansion would require an immediate outlay of $60 000 and an outlay of a further $60 000 in 5 years. Net returns are estimated to be $15 000 per year for the first 5 years and $10 000 per year for the following 10 years. Find the net present value of the project. Should the expansion project be undertaken if the required rate of return is 12%?