The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The initial investment in land and equipment will be $$200,000.$ Of this amount, $170,000$ is subject to five$-$year MACRS depreciation. The balance is in nondepreciable property. The contract covers six years; at the end of six years, the nondepreciable assets will be sold for $$30,000.$ The depreciated assets will have zero resale value. Use Table $12-12.$

The contract will require an additional investment of $$50,000$ in working capital at the beginning of the first year and, of this amount, $$30,000$ will be returned to the Spartan Technology Company after six years.

The investment will produce $$62,000$ in income before depreciation and taxes for each of the six years. The corporation is in a $25$ percent tax bracket and has a $5$ percent cost of capital.

a$.$ Calculate the net present value. $($Do not round intermediate calculations and round your answer to $2$ decimal places.$)$

b$.$ Should the investment be undertaken?