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Assume that the firm invests $150,000 today and $100,000 three years from now to get $65,000 at Year 1. $90,000 at Year 2. $85,000 at

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Assume that the firm invests $150,000 today and $100,000 three years from now to get $65,000 at Year 1. $90,000 at Year 2. $85,000 at Year 3, $110,000 at Year 4. $100,000 at Year 5, and $105,000 at Year 6. What's the Net Present Value of this investment? Assume the interest(discount) rate of 15.4%. $119.493.07 $125.365.23 $98,321.24 $106.245.56 D Question 18 2.5 pts In this module, we have learned the concepts of Net Present Value and Profitability Index. Which of the following is true? The Profitability Index allows the user to find out how fast the company will be recover the initial investments to the project in either future value or present fie. discounted) value. Whereas Net Present Value (NPV) is computed dividing the total PV of earnings with the tota PV of investments. Profitability Index is computed subtracting the PV of investments from the PV of earnings. This makes NPV a better tool in how much the project earned relative to the investments made, while profitability Index is better in gauging the sheer amount of the profit generated Profitability Index is a better option than Net Present Value in gouping how profitable the project will be relative to its costs as it offers a ratio of the PV of earning to the costs incurred None of the above all of the above are incorrect statement)

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