Use the following investment scenarios and corresponding cash flows to answer the questions

Investment 1 has the following profile:

Cost of Capital = 9.5%

Initial investment = $950,000

Year 1 cash flow = $300,000 Year 2 cash flow = $200,000 Year 3 cash flow = $200,000 Year 4 cash flow = $600,000 Year 5 cash flow = $500,000

Investment 2 has the following profile:

Cost of Capital = 9.5%

Initial Investment = $950,000

Year 1 cash flow = $400,000 Year 2 cash flow = $400,000 Year 3 cash flow = $500,000 Year 4 cash flow = $150,000 Year 5 cash flow = $150,000