otal (20 Marks) Question Three Part A A firm has been able to raise capital outlay of K55,000 to invest in the wholesale of commodities. The managers discussed in the meeting that taking into account a number of factors they will consider the project to be a success if the investment is recovered in three years. The discount rate used is 15%. The expected cash flows from the investment over six year is as follows. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 K15,000 K35,000 K20,000 K10,000 K5,000 K10,000 Required 1. State and briefly comment on the concept of Time Value of Money (2 Marks) 2. Calculate the payback period and comment whether managers should accept the investment (2 Marks) 3. Calculate the net present value at the discount rate of 15% and advice the managers whether they should accept the investment or not based on your calculations (5 Marks) PB