Problem 2...25 points Hoola Hoop, Inc. is contemplating a capital investment that will require an initial cash expenditure today of $65,000 and an additional capital expenditure of $10,000 one year later. Inventory of 15,000 has also been committed to support the initial investment. The Required Rate of Return necessary for this investment is 15%. The "after-tax cash inflows"are expected to terminate at the end of the fourth year and are as follows: End of Year Cash Flow $25,000 27,000 I 26,000 22,000 2 3