Question 9 1 pts A non-tax paying entity has the following investment opportunity: Initial investment of AUD$660,000 in year with zero scrap value (obsolete at end of useful life) Forecast cash inflows = AUD160,000 per annum for 10 years Required rate of return = 16% (10 year annuity = 4.833) A consultant suggests the cash flows above should have a probability outcome of 60% with 40% probability of the cash inflows being 15% less. Do you recommend this investment? Yes: Accept because NPV is $84,400. No: Reject because -15% for 10 years makes NPV negative. Yes: Accept because NPV is $113,280. Yes: Accept because NPV is $66,883. No: Reject because cash flows are uncertain and hurdle rate is too low. Next