1. Waldrup Industries is considering a proposal for a joint venture that will require an in- vestment of C$13 million. At the end of the fifth year, Waldrup's joint venture partner will buy out Waldrup's interest for C$10 million. Waldrup's chief financial officer has estimated that the appropriate discount rate for this proposal is 12 percent. The expected cash flows are given below. Year Cash Flow (C$) -13,000,000 3,000,000 3,000,000 3,000,000 3,000,000 10,000,000