You have a chance to invest in a shopping center. The total investment for the purchase of the land and construction of the center is $10,000,000 today. You have calculated the yearly net after tax cash flows from operations as follows: Year 1: $1,500,000 Year 2: 2,000,000 Year 3: 2,250,000 Year 4: 2,500,000 Year 5: 2,750,000

At the end of year 5 you will sell the shopping center for $18,000,000 after taxes. Required: Use the Template provided or Excel spreadsheet to calculate the present value of all the operating after-tax cash flows and the total cash flows for the project assuming you require an 20% R.O.I. Use the attached PRESENT VALUE TABLE for your calculations:

Calculate the total present value of the after tax cash flows to determine if the project should be accepted below: