Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 10%. The patent is expected to generate the following amounts of annual income and cash flows: Year 1 Year 2 Year 3 Year 4 Net income $5,100 $6,500 $6,300 $3,000 Operating cash flows 17,200 18,500 18,000 14,600 (Click here to see present value and future value tables) A. What is the NPV of the investment? Round your present value factor to three decimal places and final answer to the nearest dollar. B. What happens if the required rate of return increases? If the required rate of return increases, the NPV will be lower Feedback Check My Work Discount the operating cash flows in accordance to the years they occur using the appropriate time value of money table. The total amount of all cash flows represents the net present value. What does this amount represent? Check My Work Previous Next > All