Question: > a 5) Western Hemisphere is developing a special ATV for recreational use. The development requires investments (costs) of $156,000 today, $100,000 in 2 years

 > a 5) Western Hemisphere is developing a special ATV for

> a 5) Western Hemisphere is developing a special ATV for recreational use. The development requires investments (costs) of $156,000 today, $100,000 in 2 years from today and 200,000 in 3.5 years from today. Net returns for the project are expected to be $30,000 quarterly (end) over the next 10 years. Further, there will be a one-time franchise fee earned (treat as income or inflow) of $100,000 in 5 years from today. Given interest rates are assumed to by 8% compounded annually, determine the Net Present Value (NPV) of this project. (5 marks) a) What is the NPV of the Inflows b) What is the NPV of the Outflows 3) What is the overall NPV

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