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19. Cash Flows An initial investment of $100,000 in a business guarantees the following cash flows: Year Cash Flow 9 10 $25,000 $25,000 $30,000 $50,000

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19. Cash Flows An initial investment of $100,000 in a business guarantees the following cash flows: Year Cash Flow 9 10 $25,000 $25,000 $30,000 $50,000 11 12 Assume an interest rate of 4% compounded quarterly. (a) Find the net present value of the cash flows. (b) Is the investment profitable? 210 Chapter TVICIUTOTT (20) Cash Flows Repeat Problem 19 for the interest rate of 6% compounded semiannually

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