Problem $12-16($Algo$)$ Net present value method $[$LO$12-4]$

Skyline Corporation will invest $$250,000$ in a project that will not begin to produce returns until the end of the $5$ th year. From the end of the $5$th year until the end of the $12$th year $(8$ periods$),$ the annual cash flow will be $$60,000.$

Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a$.$ Calculate the net present value if the cost of capital is $10$ 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 project be undertaken?

No

Yes