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

The Horizon Company will invest $$52,000$ 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.

Year Cash Flow

$1$ $ $17,000$

$232,000$

$322,000$

The firm will also be required to spend $$11,000$ to close down the project at the end of the three years.

Compute the net present value if the cost of capital is $9$ percent.

Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to $2$ decimal places.

Should the investment be undertaken?

multiple choice

No

Yes