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if possible, need c&d. they are tied to eachother. thank you! 140,000 S777777 so 5 14. Your company has a proposed Capital Investment. Make up

image text in transcribedif possible, need c&d. they are tied to eachother. thank you!
140,000 S777777 so 5 14. Your company has a proposed Capital Investment. Make up your own data in the following format: Original Cost of Investment: Residual Value (make yours 0): Useful Life (choose 5-10 years): 7 years Minimum acceptable Rate of Return (choose 5%,8%,10% or 13%): 77% Net (equal) Annual Cash Flows 577777 per year Annual Net Income 577777 per year 200,000 210,000 Use the following Present Value of an Annuity table for parts a, b, and di 10% 5% Year (payments) 5 6 7 8 9 10 4.330 5.076 5.786 6.463 7.108 7.722 3.993 4.623 5.206 5,747 6.247 6.710 3.791 4.355 4.868 5.335 5.759 6.145 3.517 3.998 4.423 4.797 5.132 5.426 1.000 -O- a) Calculate the Net Present Value (NPV) of your investment using your minimum acceptable Rate of Return (please indicate "positive (+)", or "negative (-)" with your answer). ress - depreciation cost (straight line) - 140.000/s - 28,000 > 200,006 - 28,000- yr cash outlin annual net me = 172.000 PV factor (SA) intan investment - -140,000 P of cash flows annual cash flows-- 1-5 - - 200.000 - - - 4.330 - --140,000 861.000 b) Calculate the Present Value Index of your investment (round to 0.00). NPV: 720,000 NPU / initial investment: 726,000/140,000 15.19 c) Calculate the Present Value Factor for an Annuity (IRR factor) for your investment (round to 0.000). d) Based on your Factor in part c above, is your Internal rate of Return (IRR) lower or higher than your Minimum acceptable Rate of Return? Explain why

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