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An engineer has been offered an investment opportunity that will require an immediate cash outlay of $ 4 0 , 0 0 0 for a

An engineer has been offered an investment opportunity that will require an
immediate cash outlay of $40,000 for a cash inflow of $3500 for each year of
investment. However, she must state now the number of years she plans to
retain the investment. Additionally, if the investment is retained for 6 years, a
lump-sum amount of $42,000 will be returned to her; after 10 years, the lump-
sum return is anticipated to be $49,500, and after 15 years, it is estimated to
be $56,000. Money is currently worth 12% per year. Determine the present
worth values for 6 years, 10 years, and 15 years, and decide if the decision is
sensitive to the retention period?
The present worth when the investment is retained for 6 years is $
The present worth when the investment is retained for 10 years is $
The present worth when the investment is retained for 15 years is $
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