PE 9-7 Discounting Cash Outflows The company is deciding whether to invest in a certain capital investment. The investment requires an initial outlay of $55,000 and annual payments of $12,000 made at the end of the year for five years. The company's discount rate is 14%. What is the present value of cash outflows related to this investment? STUKENT PE 9-8 Discounting Cash Inflows Refer to the data in PE 9-7. The company expects the new investment will generate revenues of $24,000 per year for the five years of the investment's life. At the end of the four years, the company expects the investment to have a salvage value of $20,000. What is the present value of cash inflows related to this investment? Should the company make this investment?