Suppose that you can invest $11,000 in a business that guarantees you the following cash flows: $5500 at the end of 2 years,$4500 at the end of 4 years,and $4000 at the end of 5 years.Assuming an interest rate of 6.25% 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 $11,000 in a business that guarantees you the following cash flows: $5500 at the end of 2 years,$4500 at the end of 4 years,and $4000 at the end of 5 years.Assuming an interest rate of 6.25% compounded annually,find the net present value of the cash flows.Is the investment profitable?

Suppose That You Can Invest $11,000 in a Business That