Question 4 An investor is considering to invest in a project that requires an outlay of $1 million at outset and further payments at the end of each of the first 3 years, the first payment being $0.5 million and each successive payment decreasing by $0.1 million. At the end of 10 years, a further investment of $0.8 million will be required. The project is expected to provide a continuous income at a rate of $0.1 million in the first year, $103,000 in the second and so on, with income increasing each year by 3% per annum compound. This income is received for 20 years. At the end of 20 years, the project will be sold to another investor for $1.5 million. Calculate the net present value of the project at a rate of interest of 8% per annum effective