Suppose that you can invest $10,000 in a business that guarantees you the following cash flows: $5000 at the end of 2 years,$4000 at the end of 4 years,and $3000 at the end of 6 years.Assuming an interest rate of 7.25% compounded annually,find the net present value of the cash flows.Is the investment profitable?

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The Answer of Suppose that you can invest $10,000 in a business that guarantees you the following cash flows: $5000 at the end of 2 years,$4000 at the end of 4 years,and $3000 at the end of 6 years.Assuming an interest rate of 7.25% compounded annually,find the net present value of the cash flows.Is the investment profitable?

Suppose That You Can Invest $10,000 in a Business That