3. The estimated relevent annual expected cash flows (C1) associated with the puchase of the new factory inLargo are as follows:

YearC1PV(C1)

1??

2$291,000$202,083

3$191,000$110,532

4$306,000$147,569

5$424,000$170,396

In Year 3,theestimated relevent annual expected cash flowsrepresentsfundsused to pay operating expenses for subsequent years. Allestimated relevent annual expected cash flowsinclude a risk premium of 13 percent, which has already been applied to the cash flows above. Solve for cash flow for Year 1 based on your answer in Question 2. Then, solve for present value (PV) for Year 1. What is the total of present value for all five years?Should the factory be purchased? Why or why not?