THIS QUESTION HAS MULTIPLE PARTS Part A (5 points): If the appropriate interest rate to use when evaluating potential projects for your firm is 10%, what is the present value of these cash flows? You work for a manufacturing firm and have been tasked with analyzing a potential investment in a new business line. After careful analysis, your team has modeled the anticipated future cash flows associated with this potential new business line over its anticipated 16-year life. They are outlined below. (Please scroll down to view the entire table) The present value of these cash flows is: $ PLEASE ROUND YOUR ANSWER TO THE NEAREST DOLLAR Part B (5 points): If the cost of investing in this new business line is $120,000, payable immediately, should the firm make the investment? Cash Flow from New Business T= 0 $ 1 O A. YES, the firm should make the investment. 2 OB. NO, the firm should not make the investment. 3 $ $ $ $ $ 4 CE! 5 6 7 8 $ $ $ $ $ $ 10,000 10,000 10,000 10,000 20,000 20,000 20,000 20,000 15,000 15,000 15,000 15,000 10,000 10,000 10,000 10,000 9 10 11 12 $ $ 13 14 15 $ $ $ 16 end of table