system is expected to care 15. Nike, Inc. is considering a new inventory system that wil cost $110,000. The system is expected to generate positive cash flows over the next four years in the amounts of $25,000 in year one, $35,000 in year two, $45,000 in year three, and $30,000 in year four. Nike's required rate of return is 8%. What is the net present value of this project to the nearest ten dollars? $35,000 in year two: What is the net present a) $930 b)-$25,000 c) $10,930 d)-$1,800 16. (10 points, show your work): Under Armour, Inc. is considering two potential investments. The probability distributions of annual end-of-year cash flows for the respective projects are: Project A Project B Probability Outcome Probability Outcome $20,000 $24,000 .50 $30,000 $30,000 $40,000 $36,000 25 Both projects will require an initial outlay of $100,000 and will have an estimated life of 6 years. Project A is considered a riskier investment and will have a risk- adjusted required rate of return of 15%, while Project B's risk-adjusted required rate of return is 12%. a) Determine the expected value of each project's annual cash flow. Project A Project B b) Determine each project's risk-adjusted net present value. Project A Project B