Question: Western Hemisphere is developing a special ATV for recreational use. The development requires investments (costs) of $180,000 today, $200,000 in 2 years from today and

Western Hemisphere is developing a special ATV for recreational use. The

Western Hemisphere is developing a special ATV for recreational use. The development requires investments (costs) of $180,000 today, $200,000 in 2 years from today and 300.000 in 5 years from today. Net returns for the project are expected to be $90,000 semi-annually over the next 10 years. Further, there will be a one-time franchise fee eamed (treat as income or inflow) of $150,000 in 6 years from today. Given interest rates are assumed to by 11% compounded annually, determine the Net Present Value (NPV) of this project. (6 marks) a) What is the NPV of the Inflows b) What is the NPV of the Outflows c) What is the overall NPV

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