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3. A sports company is purchasing a machine that will lubricate the Soccer Balls. It has decided to INVEST 100000 RIYALS in year 2018 and

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3. A sports company is purchasing a machine that will lubricate the Soccer Balls. It has decided to INVEST 100000 RIYALS in year 2018 and expects RETURNS in years 2019, 2020 and 2021; as shown in the Table below. End of year 2018 2019 2020 2021 CASH FLOW (riyal) 100000 25000 40000 40000 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 PRESENT WORTH is equal to the CAPITALIZED EQUIVALENT WORTH and the rate of return remains unchanged. (10 POINTS) NET

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