In: Finance
Turner Video will invest $96,500 in a project. The
firm cost of capital is 11%. the investment will provide the
following inflows.
year.
inflows
1.
$34000
2.
36000
3.
31000
4.
39000
5.
4300
The Internal rate of return is 12%
A. if the reinvestment assumption of net present value is use. What
will be the total value of inflows in the next five year.
B. What will be the reinvestment assumption if the Internal Rate
Return method is used?
I HAVE TAKEN LAST FIGURE AS "43000" AND NOT "4300". I THINK ONE ZERO IS LEFT OUT. IF IT IS "4300" ONLY LET ME KNOW, WILL CHANGE ANSWER ACCORDINGLY. THANK YOU