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 220000 K L 2 250000 0.7972 199300 3 300000 M N 4 200000 0.6355 127100 5 180000 0.5674 102132 Question: If the Net Present Value of the investment opportunity is an unfavourable R11 490, what is the initial outlay? A R811 490 B R850 000 C R848 510 D R860 000

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