Problem $12-15($Algo$)$ Net present value method $[$LO$12-4]$

The Horizon Company will invest $$96,000$ in a temporary project that will generate the

following cash inflows for the next three years. Use Appendix B for an approximate

answer but calculate your final answer using the formula and financial calculator

methods.

The firm will also be required to spend $$16,000$ to close down the project at the end of

the three years.

a$.$ Compute the net present value if the cost of capital is $11$ percent.

Note: Negative amount should be indicated by a minus sign. Do not round

intermediate calculations and round your answer to $2$ decimal places.

Net present value

b$.$ Should the investment be undertaken?

Yes

No