5. An investment has an initial cost of $750,000 and will generate estimated future cash flows...

 

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5. An investment has an initial cost of $750,000 and will generate estimated future cash flows of $200,000 per year for the next five years. Required (a) (b) Calculate the following: (1) (iv) The payback period The return on the initial investment The present value using an interest rate of 10% (v) The present value using an interest rate of 20% Is the investment worthwhile? 5. An investment has an initial cost of $750,000 and will generate estimated future cash flows of $200,000 per year for the next five years. Required (a) (b) Calculate the following: (1) (iv) The payback period The return on the initial investment The present value using an interest rate of 10% (v) The present value using an interest rate of 20% Is the investment worthwhile?