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You have been offered the opportunity to invest in a short-term business venture. The business is expected to generate cash inflows over a period of

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You have been offered the opportunity to invest in a short-term business venture. The business is expected to generate cash inflows over a period of three years being $1,000 in year 1, $2,000 in year 2 and $3,000 in year 3. The business adviser who is offering this investment to you says it will cost you $4,800 to invest today (year 0) which will give you a $1,200 profit over the three years. You want to make a 10%p.a. return on your investment. State whether you should invest or not and explain why by demonstrating numerically the value of this investment opportunity. Present you answer in a way similar to below (you can create a 6 x 4 table to present your answer) Period (t) Cash Flow PVIF PVCF O 1 N 3 NPV And state in one sentence whether you should invest or not by referring back to your calculation

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