Please show work Hammer Company is considering the following two investment...
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Hammer Company is considering the following two investment proposals: The cash flow for the first proposal is as follows: The second proposal is an investment proposal with the following cash flows: The initial investment of this proposal is $100,000. The promised returns are: a semi-annual annuity of $5, 500 for 8 years (the first payment is received at the end of the first 6 months after the initial investment is made). Assuming that the cost of funds for the company is 8% and the risk is the same for both projects, determine the net present value for each investment and identify the most profitable investment. You may use a financial calculator or spreadsheet. Show your work
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