Carmichael Radio Company,a distributor of radio towers and antennas, is considering buying the entire inventory of West Tower Company, which manufactures extremely large, heavy-duty towers, and which is going out of business. These towers would cost $250,000 delivered to Carmichael’s warehouse. Carmichael plans to sell these towers to special customers. Carmichael’s required rate of return is 20%.

Required: Compute the net present value of Carmichael’s investment for each of the following assumed patterns of cash inflows that could result from the sale of these towers.

(1) Cash inflows of $100,000 each year for 6 years.

(2) Cash inflows of $60,000 each year for 8 years.

(3) Cash inflows of $200,000 during the first year, $100,000 in each of the second and third years, and $50,000 in each of the fourth and fifth lop5 years.