4. The Staff of Jefferson Medical Services has estimated the following net cash flows for a food services operation that it may open in its outpatient clinic:

Year Expected net cash flow

0 ($100,000)

1 30,000

2 30,000

3 30,000

4 30,000

5 30,000

5(salvage value) 20,000

The Year o cash flow is the net investment outlay, while the final amount is the terminal cash flow. (The clinic is expected to move to a new building in five years.) All other flows represent net operating cash flows. Jefferson