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A Case study: suppose that Sammy lent $40,000 to his friend. The friend pays him back $12,000 in year 1, $5,400 in year 2, $15,000

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A Case study: suppose that Sammy lent $40,000 to his friend. The friend pays him back $12,000 in year 1, $5,400 in year 2, $15,000 in year 3, $7,500 in year 4, and $5,000 in year 5. The interest rate is 6.5%. Refer to the above case study. What is the Present Value of the cash flows from his friend' payments? (Hint: I am only asking you to calculate the PV for the cash inflows here) O A. $37,925.6 B. $41,031.5 OC. $36,541.0 D. $40,000 QUESTION 16 Refer to the above case study. What is the NPV (or net present value) for this case? A. $2074.370 OB. -$2074.370 OC. $1685 OD.-$1685 O E. -$40,000 QUESTION 17 Refer to the above case study. Is this a good deal for Sammy? A. Yes, it is a good deal OB. No, it is not a good deal

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