outlet. He would have to purchase equipment costing $ 500,000 to equ ip the outlet and invest an additional $ 150,000 for inventories and other wor king capital needs. Other outlets in the fastfood chain have an annual net cash inflow of about $ 160,000. Mr. Anders would close the outlet in 8 year s. He estimates that the equipment could be sold at that time for about 10 % of its original cost. Mr. Anders ' required rate of return is 16 %. Required: Part A: What is the investment ' s net present value when the discount r ate is 16 %? Part B: Refer to your calculations. Is this an acceptable investment? Why or why not? 3. Question:( TCO A) The following data( in thousands of dollars) ha ve been taken from the accounting records of the Maroon Corporation for the just-completed year. Sales 1,300 Raw materials inventory, beginning 25 Raw materials inventory, ending 30 Purchases of raw materials 250 Direct labor 350 Manufacturing overhead 500 Administrative expenses 300 Selling expenses 250 Work in process inventory, beginning 150 Work in process inventory, ending 100 Finished goods inventory, beginning 80 Finished goods inventory, ending 110 Use the above data to prepare( in thousands of dollars) a schedule of Cost