An investment is expected to produce the following annual year-end cash flows:

Year 1$ 5,000.00Year 2$ 1,181.00Year 3$ .00Year 4$ 5,520.00Year 5$ 6,340.00Year 6$ 1,544.16

The investment will cost $14,100 today.

Required:

a. Will this investment be profitable? b. What will be the IRR (compounded annually) on this investment? c. Show how much of each years cash flow is recovery of the $14,100 investment and how much of the cash flow is return on investment. (Hint: See Exhibit 3-13 and Concept Box 3.2.)

An investment is expected to produce the following annual year-end cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $ 5,000.00 $ 1,181.00 $ .00 $ 5,520.00 $ 6,340.00 $ 1,544.16 The investment will cost $14,100 today. Required: a. Will this investment be profitable? b. What will be the IRR (compounded annually on this investment? c. Show how much of each year's cash flow is recovery of the $14,100 investment and how much of the cash flow is return on investment. (Hint: See Exhibit 3-13 and Concept Box 3.2.) Complete this question by entering your answers in the tabs below. Required A Required B Required C Will this investment be profitable? Yes No An investment is expected to produce the following annual year-end cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $ 5,000.00 $ 1,181.00 $ .00 $ 5,520.00 $ 6,340.00 $ 1,544.16 The investment will cost $14,100 today. Required: a. Will this investment be profitable? b. What will be the IRR (compounded annually on this investment? c. Show how much of each year's cash flow is recovery of the $14,100 investment and how much of the cash flow is return on investment. (Hint: See Exhibit 3-13 and Concept Box 3.2.) Complete this question by entering your answers in the tabs below. Required A Required B Required C What will be the IRR (compounded annually) on this investment? Internal rate of return %