Question 04: M&M Company is considering a new product line to supplement its range line. It is anticipated that the new product line will involve cash investment of $900,000 at time 0 and $1.2 million in year 1. After-tax cash inflows of $350,000 are expected in year 2, $400,000 in year 3, $450,000 in year 4, and $500,000 each year thereafter through year 10. If the required rate of return is 15 percent, what is the net present value of the project? Is it acceptable? (3 +1 = 4 Marks ]