Your colleague has asked you to consider and investment of $250,000 to her KLW compact fitness equipment business that will build and sell compact fitness equipment specialized for small apartments and condos in Vancouver. These items would fold and fit into bookcases and wall doors. Funds would be used to complete the prototype, obtain patents and set up manufacturing Terms of the proposal are that you would receive $50,000 at the end of each year in interest with the full $250,000 to be repaid at the end of a ten-year period. a. Assuming a 10% required rate of return, calculate the present value of cash flows and the net present value of the proposed investment. b. Based on this same interest rate assumption, calculate the cumulative cash flow of the proposed investment for each period in both nominal (without and discount rate – just add the cash flows) and present value terms. c. What is the payback period in both nominal and present-value terms? d. Can the present-value payback period ever be shorter than the nominal payback period?