Q.4 Suppose that a company like Calm Ltd Products and Chemicals is considering building a new lights-out facility and has gathered the following information: Purchase price K600, 000 Residual value K100, 000 Desired payback period 3 years Minimum rate of return 15% The cash flow estimates are as follows: Year Cash inflows Cash Outflows Net Income Net Cash Projected $240,000 1 $ 500,000 $260,000 $115,000 2 450,000 400,000 240,000 210,000 85,000 3 220,000 180,000 55,000 25,000 350,000 200,000 150,000 Totals $1,700,000 $920,000 $780,000 S280,000