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3. A sports compan Soccer Balls. expects RETURN below. y is purchasing a machine that will lubricate the It has decided to INVEST 100000 RIYALS

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3. A sports compan Soccer Balls. expects RETURN below. y is purchasing a machine that will lubricate the It has decided to INVEST 100000 RIYALS in year 2018 and S in years 2019, 2020 and 2021; as shown in the Table End of year 2018 2019 2020 CASH FLOW (riyal 100000 25000 40000 40000 2021 Determine the NET PRESENT WORTH, if the rate of return is adjusted to 5 percent. In addition, compute the receipt of fixed ANNUAL RETURNS (A), if the project is considered for an infinite service life. Assume the NET PRESENT WORTH is equal to the CAPITALIZED EQUIVALENT WORTH and the rate of return remains unchanged. (10 POINTS)

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