Exercise 6 Last year AllStar Venture Capital agreed to invest funds in Clean Air Now (CAN),...

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Exercise 6 Last year AllStar Venture Capital agreed to invest funds in Clean Air Now (CAN), a start-up company in Las Vegas that is an outgrowth of research conducted in mechanical engineering at the University of Nevada-Las Vegas. The product is a new filtration system used in the process of carbon capture and sequestration (CCS) for coal-fired power plants. The venture fund manager generated the cash flow diagram in below Figure in $1000 units from AllStar's perspective. Included are payments (outflows) to CAN made over the first year and receipts (inflows) from CAN to AllStar. The receipts were unexpected this first year; however, the product has great promise, and advance orders have come from eastern U.S. plants anxious to become zero-emission coal-fueled plants. The interest rate is 12% per year, compounded quarterly, and AllStar uses the no-interperiod-interest policy. How much is AllStar in the "red" at the end of the year? Exercise 6 - Continue Receipts from CAN $120 $90 $90 5 8 ITuDign= $75 $100 Payments to CAN $150 - $200 4 10 $50 $45 11 12 Year Month Exercise 6 Last year AllStar Venture Capital agreed to invest funds in Clean Air Now (CAN), a start-up company in Las Vegas that is an outgrowth of research conducted in mechanical engineering at the University of Nevada-Las Vegas. The product is a new filtration system used in the process of carbon capture and sequestration (CCS) for coal-fired power plants. The venture fund manager generated the cash flow diagram in below Figure in $1000 units from AllStar's perspective. Included are payments (outflows) to CAN made over the first year and receipts (inflows) from CAN to AllStar. The receipts were unexpected this first year; however, the product has great promise, and advance orders have come from eastern U.S. plants anxious to become zero-emission coal-fueled plants. The interest rate is 12% per year, compounded quarterly, and AllStar uses the no-interperiod-interest policy. How much is AllStar in the "red" at the end of the year? Exercise 6 - Continue Receipts from CAN $120 $90 $90 5 8 ITuDign= $75 $100 Payments to CAN $150 - $200 4 10 $50 $45 11 12 Year Month