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QUESTION 17 0.5 points A Case study: suppose that Sammy lent $40,000 to his friend. The friend pays him back $12,000 in year 1, $5.400
QUESTION 17 0.5 points A Case study: suppose that Sammy lent $40,000 to his friend. The friend pays him back $12,000 in year 1, $5.400 in year 2. $15,000 in year 3, $7.500 in year 4, and $5,000 in years. The interest rate is 6.5%. Refer to the above case study. What is the Present Value of the cash flows from his friend payments? (Hint: I am only asking you to calculate the PV for the cash inflows here) O A $37.925.6 B. $41,031.5 O C 536,541.0 OD. 540.000 QUESTION 18 Refer to the above case study. What is the NPV (or net present value) for this case? O A. $2074.370 OB.-$2074.370 OC. $1685 O D.-51685 E. -$40,000
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