Jane Sumners has just inherited $600,000 from her aunt's estate. She is considering investing part of these funds in a small catering business. She would need to purchase a delivery van and other equipment costing $100,000. She would also have to invest $50,000 in working capital which would be returned at the end of the project. Marketing studies indicate the annual cash inflow after expenses should be $36,000 per year. Jane wishes to operate the business for six years. At that time she believes both the van and equipment could be sold at 10% of the original cost. Jane's wants a rate of return of 16%. Calculate the net present value of this project. (8 pts) 2. Glocker Company makes two products in a single facility. The following information is available: Product A Product B Selling price $55.80 $54.60 Variable manuf. costs Variable selling costs 25.80 2.10 29.60 1.40 Contribution Margin 27.90 23.60 The company is currently dealing with a constraint on the availability of time with their mixing machines. Product A takes 2 minutes of mixing time per unit and Product B requires 1 minute of mixing time. Which product should the company manufacture to maximize its profitability given the limitation of mixing machine time? Show your work. (8 pts)