The Maqosa Group is evaluating the prospect of constructing a new shopping mall in Vaomalu at a cost of $1.0 million. The mall will be depreciated on a straight-line basis and can be sold for $750,000 after five years. The Group will make money by renting the shops out to various retailers. The investors require a 10% return on investment.

Having evaluated market demand and competition, the accountant has estimated the following net cash inflows for the five years of operation.

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Year 1 2 3 5 Net Inflows $ 150,000 200,000 200,000 300,000 300,000 Year 1 2 3 5 Net Inflows $ 150,000 200,000 200,000 300,000 300,000