An initial investment of $25,000 in a business guarantees the following Cash flows:
Assume an interest rate of 5% compounded semiannually,
a) Find the net present value of the cash flows.
b) Is the investment profitable?
Code:
Years Cash Flows
3 $8,000
4 $10,000
6 $14,000
a) Find the net present value of the cash flows.
b) Is the investment profitable?