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You are evaluating an investment that will pay you $5,000 in two years and $6,000 in four years. If your required return is 8%p.a. compounded
You are evaluating an investment that will pay you $5,000 in two years and $6,000 in four years. If your required return is 8%p.a. compounded annually, how much is this investment worth? $10,185.19 $9,430.73 $8,696.87 $8,085.33 QUESTION 6 Fuller Brush Ltd is considering a new line of scrub brushes. After spending $10,000 on market research, they expect that annual sales of the new brush will be $200,000. The cost of producing these brushes will be $150,000 per year. Production equipment will be depreciated at $25,000 per year. Fuller Brush Ltd faces a company tax rate of 30%. What is the annual net cash flow that Fuller Brush will include when computing NPV (ignore any working capital or capital expenditure). $17,500 $42,500 $25,000 $50,000
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