The projected annual net cash flows associated with an investment opportunity are shown below in Table 5. The expected rate of return on the investment is 12%. Year Future Cash flows Discount factor Present Values 1 220 000 250 000 K 0.7972 L 199 300 2 300 000 M 0.6355 0.5674 N 4 200 000 127 100 5 180 000 102 132 Table 5: Annual net cash flows of the investment opportunity. Determine the missing values represented by K,L,M,and N in Table 5 AK=0.8929;L=R196438;M=0.7118 and N=R213540 BK=0.9009;L=R198 198;M=0.7312 and N=R219360 CK=0.9174;L=R201828;M=0.7722and N=R231660 DK=0.8929;L=R196438;M=0.7722and N=R231540 Calculate the total present value of the net cash flows from the investment opportunity A R859 028 BR902575 C R838 510 D R866 704 If the Net Present Value of the investment opportunity is an unfavourable R11 490.what is the initial outlay A R811490 B R850000 CR848 510 DF R860 000

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