Problem $22-16$

A risky $$36,000$ investment is expected to generate the following cash flows:

Year $123$

$ $18,375$ $ $21,000$ $ $24,500$

The probability of receiving each cash inflow is $80,70,$ and $60$ percent, respectively. If the firm$$s cost of capital is $8$ percent, should the investment be made? Use Appendix D 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

should

be made.