Consider a project that requires an initial investment of $100,000

Resolved Question:

Consider a project that requires an initial investment of $100,000 and will produce a single cash flow of $150,000 in five years.

a. What is the NPV of this project if the five-year interest rate is 5% (EAR)?

b. What is the NPV of this project if the five-year interest rate is 10% (EAR)?

B.the XYZ company has a choice between two warehouses.A lease at location A costs $1000 per month with a payment of $2000 up front to guarnatee the last the 3 years lease. location B would cost $1200 per month and wo