Question: A risky $ 3 1 0 , 0 0 0 investment is expected to generate the following cash flows: Year 1 2 3 4 $

A risky $310,000 investment is expected to generate the following cash flows:
Year 1234
$ 109,300 $ 167,025 $ 166,818 $ 136,000
If the firms cost of capital is 10 percent, should the investment be made? 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.
NPV: $
The investment be made.
An alternative use for the $310,000 is a four-year U.S. Treasury bond that pays $18,600 annually and repays the $310,000 at maturity. Management believes that the cash inflows from the risky investment are equivalent to only 75 percent of the certain investment, which pays 6 percent. Should the investment be made? Use Appendix B to answer the question. Do not round other intermediate calculations. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.
NPV: $
The investment be made.

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