CLICK HERE TO SAVE YOUR WORK 1124 " Monson Company is considering the following investment opportunity with cash flows as described below: 7 20 Project B: Initial cash investment now (Time 0) $15,000 4 Annual cash outflow per year for 5 years Additional cash inflow at the end of the 5th year $3,000 $25,000 6 7 The Present Value at Time 0 is 1.000 9 The Present Value of $1 using a discount factor of 10%: 10 G " 11 12 Year 1 Year 2 0.909 0.826 Year 31 0.751 Year 4 Year 5 Year 6 Year 0.681 0.621 0.564 13 The factor for the Present Value of an Annuity of $1 discount factor of 10% 24 S Year 1 Year 2 0.909 1.736 Year 3 2.487 Year 4 Year 5 Year 6 Year 3.170 3.791 4.355 6 Required: 7 1. Compute the net present value of the project assuming Monson Company uses a 10% discount rate. (9 marks) Project B: , Answer Sheet New TOSHIBA