Ibez Co. is considering a project that requires an initial investment of $60,000 and will generate net cash flows of $16,000 per year for 6 years. Ibez requires a return of 9% on its investments. The present value factor of an annuity for 6 years at 9% is 4.4859.

a. Compute the net present value of the project.

b. Determine whether the project should be accepted on the basis of net present value.