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Sagot :
Answer:
the second investment
Explanation:
The future worth can be determined by first determining the net present value and then finding the future value
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Investment 1
Cash flow in year 0 = $-20,000.
Cash flow in year 1 = $8,000.
Cash flow in year 2 = $9,000.
Cash flow in year 3 = $10,000.
Cash flow in year 4 = $11,000.
I = 9%
NPV = $10,429.08
Cash flow in year 0 = $-20,000.
Cash flow in year 1 = $11,000.
Cash flow in year 2 = $10,000.
Cash flow in year 3 = $9,000.
Cash flow in year 4 = $8,000.
I = 9%
NPV = $11,125.60
Cash flow in year 0 = $20,000
Cash flow in year 1 TO 4 = 9500
I = 9%
NPV = $10,777.34
Future value = PV x (1 + r)^n
1.
2. $11,125.60 x (1.09)^4
$10,777.34 x (1.09)^4 =
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