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An investment costs $ 1 0 0 , 0 0 0 at time zero, returns dividends of $ 8 , 0 0 0 per year

An investment costs $100,000 at time zero, returns dividends of $8,000 per year at the end of each of 5 years, and then is sold at the end of the fifth year for $120,000 in proceeds with an equity cost of capital at 10 percent. (Use negative numbers for initial cost representing a cash outlay.)
Required:
Answer the following questions based on the details provided.
Inventory $ 1,000,000
Total assets $ 3,500,000
Current ratio 2.20
Acid-test ratio 1.20
Debt to equity ratio 1.5

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