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  3. an investment is expected to produce the following

An investment is expected to produce the following annual year-end cash flows: Year 1 $...

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Accounting

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An investment is expected to produce the following annual year-end cash flows: Year 1 $ 5,000.00 Year 2 $ 1,170.ee Year 3 $.ee Year 4 $ 5,5ee.ee Year 5 $ 6,320.00 Year 6 $ 1,429.31 The investment will cost $14,000 today. Required: a. Will this investment be profitable? b What will be the IRR (compounded annually on this investment? c Show how much of each year's cash flow is recovery of the $14,000 investment and how much of the cash flow is return on Investment (Hint See Exhibit 3:13 and Concept Box 32) Complete this question by entering your answers in the tabs below. Required A Required B Required C What will be the IRR (compounded annually) on this investment? Internal rate of return % Show how much of each year's cash flow is recovery of the $14,000 investment and how much of the cash flow is return on investment. (Hint: See Exhibit 3-13 and Concept Box 3.2.) Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Beginning of Investment End of Year Year 10% Interest Recovery of Cash Flow Capital (ROC) (Balance) 1 $ 14,000.00 $ 5,000.00 2 1.170.00 3 0.00 5,500.00 5 6,320.00 6 1,429 31 $ 0.00 $ 19.419 31 S 0.00 4

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