Question 33 (22 points) Sylvan Inc is considering three investment options with cash flows as follows: Project X: Cash investment now Cash inflow at the end of 5 years Cash inflow at the end of 8 years $15,000 $21,000 $30,000 Project Y: Cash investment now $11,000 Annual cash outflow for 5 years Additional cash inflow at the end of 5 years $3,000 $25,000 Project Z: Cash investment now $21,000 Annual cash inflow for 4 years Cash outflow at the end of 3 years Additional cash inflow at the end of 4 years $8,000 $10,000 $10,000 Required: Compute the net present value of each project assuming Sylvan Inc uses a 12% Project Z: Cash investment now Annual cash inflow for 4 years Cash outflow at the end of 3 years Additional cash inflow at the end of 4 years $21,000 $8,000 $10,000 $10,000 Required: Compute the net present value of each project assuming Sylvan Inc uses a 12% discount rate. PV factors are as follows: PV of a $1 payment @ 12%: 4 years = 3.037 5 years = 3.605 PV of a $1 lump sum amount @ 12%: 3 years = 0.712 4 years = 0.636 5 years = 0.567