question 2.17 using the estimates above it

Project 2 3 1 4 Investment, $ Life, years Year 1 2 3 4 5 -5000-8000 -9000 -10,000 5 5 3 4. NCF Estimates, $ 1000 500 5000 0 1700 500 5000 0 2400 500 2000 0 3000 500 17,000 3800 10,500 12.17 Using the NCF estimates in Problem 12.15 for projects 3 and 4, demonstrate the reinvestment assumption made when the capital budgeting problem is solved for the four projects by using the PW method. (Hint: Refer to Equation [12.2].)