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Assume that the firm invests $125,000 today to get $25,000 at Year 1, $24,000 at Year 2, $56,000 at Year 3, $48,000 at Year 4,

Assume that the firm invests $125,000 today to get $25,000 at Year 1, $24,000 at Year 2, $56,000 at Year 3, $48,000 at Year 4, $66,000 at Year 5, and $30,000 at Year 6. What's the Net Present Value of this investment? Assume the interest (discount) rate of 10.8%. Same facts as above: what would be the NPV if the cash inflows (i.e. earnings, not the initial investment) would go up by 10% while the discount rate also goes up to 11.8%?

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