Net present value method

Ewing Enterprises is evaluating a proposed capital budgeting project that will require an initial investment of $120,000. The project is expected to generate the following net cash flows:

Year	Cash Flow
1	$37,600
2	$50,500
3	$45,000
4	$41,900

Assume the desired rate of return on a project of this type is 9%. The net present value of this project is

Suppose Ewing Enterprises has enough capital to fund the project, and the project is not competing for funding with other projects. Should Ewing Enterprises accept or reject this project?

Accept the project

Reject the project