Question: Answer the questions below, using the following data: NINV = $20,000 Cash flows expected from the new investment: $5,000 per year for the next 4

  1. Answer the questions below, using the following data:

NINV = $20,000

Cash flows expected from the new investment: $5,000 per year for the next 4 years.

Cost of Capital: 9.5%

  1. What is the net present value of the following capital investment?

  1. Should the investment be made and why?

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