Fernandez Radio Business, a distributor of radio towers and antennas, is considering buying the entire inventory of Southern Tower Business, which manufactures extremely large, heavy-duty towers, and which is going out of business. These towers would cost \(\$ 300000\) delivered to Fernandez 's warehouse. Fernandez plans to sell these towers to special customers. Fernandez 's required rate of return is 20 per cent.

Required:

Calculate the net present value of Fernandez 's investment for each of the following assumed patterns of cash inflows that could result from the sale of these towers:

1 Cash inflows of \(\$ 120000\) each year for six years.

2 Cash inflows of \(\$ 72000\) each year for eight years.

3 Cash inflows of \(\$ 240000\) during the first year, \(\$ 120000\) in each of the second and third years, and \(\$ 60000\) in each of the fourth and fifth years.