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www (CHAPTER 9) Your company has an investment opportunity, and it is trying to figure out it's worth it. Here's what's known about this investment

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www (CHAPTER 9) Your company has an investment opportunity, and it is trying to figure out it's worth it. Here's what's known about this investment opportunity Today, the company would need to invest $350,000 In 1 year the company would receive a profit of $30,000 In 2 years the company would receive a profit of $50,000 In 3 years the company would receive a profit of $200,000 . in 4 years the company would receive a profit of $200,000 The required return is 11 After doing all sorts of calculations and analyses, the company made the following several conclusions, which ones are CORRECT and which ones are INCORRECT? (1) The Net Present Value of this investment opportunity equals -54,40738 Cincrease decimal places for any termediate calculations, from the details 2 30 6c per Only round your fnw answer to Two decimal places for example, 10000.23 (2) Based on the Net Present Value approach an investment opportunty with the Net Present Value of - $4,407.38 should be rejected (3) For an investment opportunity with the Net Present Value of -54.407.38, the dollar amount representing the initial cost required for this investment opportunity is less than the dollar amount of discounted future profits. + 14) The Profitability Index of the investment opportunity given in the bullet points above is less than 0

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