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Mr Stacks is reviewing his company's investment in a cement plant. The company paid 150,000,000 five years ago to acquire the plant. Now top management

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Mr Stacks is reviewing his company's investment in a cement plant. The company paid 150,000,000 five years ago to acquire the plant. Now top management is considering an opportunity to sell it. The president wants to know whether the plant has met original expectations before he decides its fate. The company's discount rate for present value computations is 9% Expected and actual cash flows follow Year 3 Year 1 S 33,000,000 $ 27,000,000 49,200,000 0,600,000 5,600,000 9,200,000 49,800,000 9,000,000 Year 5 $ 42,000,000 $ 36,000,000 Actual REQUIRED 1. Compute the net present value of the expected cash flows as of the beginning of the investment 2. Compute the net present value of the actual cash flows as of the beginning of the investment. 3. What do you conclude from this postaudit? Advisable to set up a mini table of present value factors to make your calculations easier

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