Customer value. Ortel Telecom sells telecommunication products and services to a variety of small businesses. Two of Ortel's key clients are Square and Cloudburst, both fast-growing technology start-ups located in New York City. Ortel has compiled information regarding its transactions with Square and Cloudburst for 2017, as well as its expectations regarding their interactions over the next 3 years: Home A Insert Page Layout B Formulas C Data D Review E Expected Annual 1 Percentage Increase 2017 2 Squaro Square Cloudburst Cloudburst 3 Sales Revenues 6% 5.5% $567,000 $3,510,000 4 Cost of Sales 5% 4.5% $364,800 $3,060,000 5 Nel cash flow $202,200 $450,000 Ortel's transactions with Square and Cloudburst are in cash. Assume that they occur at year-end. Ortel is headquartered in the Cayman Islands and pays no income taxes. The owners of Ortel insist on a required rate of return of 12%. Required: 1. What is the expected net cash flow from Square and Cloudburst for the next 3 years? 2. Based on the net present value from cash flows over the next 3 years, is Cloudburst or Square a more valuable customer for Ortel? 3. Cloudburst threatens to switch to another supplier unless Ortel gives a 10% price reduction on all sales starting in 2018. Calculate the 3-year NPV of Cloudburst after incorporating the 10% discount. Should Ortel continue to transact with Cloudburst? What other factors should it consider before making its final decision