14.) What is the Present Value of the cash inflows and the Net Present Value of the following cash flows discounted at 10%? CFO CF1 45000 45000 45000 55000 55000 55000 65000 65000 CF3 CFS CF6 CF8 CF9 CF10 65000 P.V. of cash inflows o-CEO NRV. of all cash flowsggag_2 30 1445 15.) About 10 years ago, you started a business of manufacturing and selling rhinestone studded dog apparel on- line. You named your business "Diamonds On the Ruff". Anyway, your business succeeded beyond all expectations and now is grossing almost S5 million/year. Even though you are only in your mid-thirties, you would like to sell your business and retire. A business consultant has valued your business at $10,000,000 Your righthand person, who has been with you since you founded the company, would like to buy the business. However, he cannot obtain the necessary bank financing to undertake this transaction. Therefore, he makes the following offer to you: he will pay you $500,000 immediately upon signing a purchase and sale agreement. He will make monthly payments to you of s112,000/month, for 10 years, beginning the month following the sming of the sales and purchase agreement. This payment will include principle and interest at the rate of annum. ed on the information above, what is the value of the offer that has been made, and should you sell the ess based on this, assuming you believe the buyer can meet the terms of the agreement? Sell? Page 6 of 9