24) 24) Solar Wind Power Corp is considering a complex project that will terminate in four years. The initial cash outflow (ICO) is $13,000. The firm's hurdle rate is 12 percent. The after-tax cash flows associated with this project are: Year Project CES 1 $3,000 2 4,000 3 5,000 6,000 Which of the following is the closest net present value (NPV) of the project? A) Greater than $1,000 B) Between $501 and $1,000 C) Between S1 and $500 D) Less than $0 25) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 25) Your aunt is bragging about the great investment she made in a house that she bought 30 years ago for $20,000 and has just sold for $65,000 a. Calculate the rate of retum on this investment b. If the average annual rate of inflation has been 3 percent during this period, was this "a great investment?" Explain. 26) How long would it take for your money to triple if you invested it at 9 percent, 26) compounded annually? 27) 27) Bill O'Blamey tells you that he plans to give you S1 million as a birthday present on your 75th birthday. You are now 25-and a bit skeptical. You suggest that he deposit the present value of this nice gift today in an investment account for you. If the investment could earn 8 percent annually for the next 50 years, how much should he deposit today? (Ignore taxes.)