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solve on paper using one of these formuals. Q11. Problem Type: (I suggest you do Q15. before this one.) An investment opportunity requires an initial
solve on paper using one of these formuals.
Q11. Problem Type: (I suggest you do Q15. before this one.) An investment opportunity requires an initial investment of $25,000. If you make this investment today, you will receive a cash flow of $8,000 at the end of each of the next five years. Assuming you require a return of 14% on this investment, what is its net present value? I - CADA - $ 9,596.68 - $ 3.746.72 +$ 2,464.65 +S 3,746.72 +$27.880.83 E. 1.=Pv. [(1 + ()"} ) 1 PVo=FV* Lim 1+(r/m))**m |--L'a+Pm)+ FVA= A* [{1+( ****] PVA=R* (1+r (r/m) (r/m) A= FVA FVIFA7%/m,tm] R= PVA PVIFA%/m.tm Step by Step Solution
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