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ZWO Corporation is considering two possible investments and needs your help in determining which will be the better financial option. Perform the necessary calculations using
ZWO Corporation is considering two possible investments and needs your help in determining which will be the better financial option. Perform the necessary calculations using Microsoft Excel so that maximum precision can be obtained. (Unless indicated otherwise, enter your answers rounded to the nearest whole dollar/input code: 0 ). Investment Option "South" This potential investment is less risky and shorter term, so it has a minimum rate of return of 9.50%. This investment would require an initial outlay of cash of $157,500, and at the end of the 5-year life of this investment ZWO Corporation is expected to have to pay a wind-down cost of $7,875. For the first 4 years of this investment, net annual cash inflows are expected to be $38,500 and for the last vear of the investment the net annual rash inflow is exnerted to he $96,250. ZWO Corporation is considering two possible investments and needs your help in determining which will be the better financial option. Perform the necessary calculations using Microsoft Excel so that maximum precision can be obtained. (Unless indicated otherwise, enter your answers rounded to the nearest whole dollar/input code: 0 ). Investment Option "South" This potential investment is less risky and shorter term, so it has a minimum rate of return of 9.50%. This investment would require an initial outlay of cash of $157,500, and at the end of the 5-year life of this investment ZWO Corporation is expected to have to pay a wind-down cost of $7,875. For the first 4 years of this investment, net annual cash inflows are expected to be $38,500 and for the last vear of the investment the net annual rash inflow is exnerted to he $96,250
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