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Tumer Video will invest $74,500 in a project. The firm's cost of capital is 12 percent. The investment will provide the following inflows. Use Appendix
Tumer Video will invest $74,500 in a project. The firm's cost of capital is 12 percent. The investment will provide the following inflows. Use Appendix A for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Inflow 23,000 2 25,000 29,000 33,000 37.000 The internal rate of return is 15 percent. a. If the reinvestment assumption of the net present value met is used, what will be the total value of the inflows after five years? (Assume the inflows come at the end of each yea (Do not round intermediate calculations and round your answer to 2 decimal places Total value of inflows b. If the reinvestment assumption of the internal rate of retum method is used, what will be the total value of the inflows after five years? (Use the given internal rate of return. Do not round intermediate calculations and round your answer to 2 decimal places.) Total value of inflows
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