The WeBuildStuff Company has to make a decision about expanding its production facilities. Research

indicates that the desired expansion would require an immediate expense of $$150,000$ and a further

expense of $$50,000$ in $5$ years. No revenue is expected during the first year, but then net returns are

estimated to be $$25,000$ per year for the following $14$ years. The company needs to decide if the expansion

project be undertaken if the required rate of return is $8\%$ compounded annually.

a$.$ Determine the present value of the cash outlays associated with the expansion of

WeBuildStuff's production facilities.

b$.$ determine the present value of the cash inflows associated with the expansion of WeBuildStuffs production facilities

c$.$ using your answers in parts a and b$,$ determine whether WeBuildStiff should proceed with the expansion of its production facilities