It seems like SOCLEs work is paying off! They were able to teach other teams how to lose a game unnecessarily San Francisco recently signed up for the premium package. With all of that good news, SOCLE is going for the next level. They want to branch out into Soccer (or Football as some may say). They have recently gotten a contract from Qatar for the World Cup 2022. The partners in Qatar want to ensure that media coverage is positive despite all of the unfortunate investigative reports. Thus, SOCLE is going to make the following investments: - Hire Mario Basler for 5 months to manage the reporting in Qatar (before and after the Cup). Mario will charge $10,000 per month. - Mario will require a buy-out of his current trash TV contract that will incur $500,000 in month 1 of the contract and $250,000 in month 4. - Mario also needs insurance against saying something dumb during his coverage. This insurance policy will cost $15,000 that will have to be paid out of the cash flows in equal amounts across all 5 months. - Mario is going to need an assistant. SOCLE has been able to secure a deal with Zinedine Zidane who will pay $100,000 to be an intern during Marios contract. He will pay the whole amount in the last month of the contract. - Hiring Zidane will require a legal settlement that will cost $1,000,000 up front. SOCLEs accounting department has come up with projections for the cash flows listed in Table 1. They will discount cash flows at 21%. Do not consider any tax issues. Table 1: Projected Cash Flows Before Expenses Month 1 $95,000 Month 2 $650,000 Month 3 $850,000 Month 4 $950,000 Month 5 $150,000 a) Calculate NPV. Will your accounting department approve of this investment? b) Building on part a): Since Mario is desperate for employment, he will accept his payment as a single payment of $50,000 in month 5 of his contract. Calculate NPV. Will your accounting department approve of this investment? c) Building on part b): Zinedine Zidane is also desperate to get hired and is willing to pay for his internship in full in the first month.