1. Briarcliff Stove Company is considering a new product line to supplement its range line. It is anticipated that the new product line will involve cash investments of $700,000 at time 0 and $1.0 million in year 1. After-tax cash inflows of

$250,000 are expected in year 2, $300,000 in year 3, $350,000 in year 4, and

$400,000 each year thereafter through year 10. Although the product line might be viable after year 10, the company prefers to be consemative and end all calculations at that time.