Turner Video will invest $76,500 in a project. The firm’s cost of capital is 12 percent....

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Turner Video will invest $76,500 in a project. The firm’s costof capital is 12 percent. The investment will provide the followinginflows. Use Appendix A for an approximate answer but calculateyour final answer using the formula and financial calculatormethods.
Year Inflow
1 $ 24,000
2 26,000
3 30,000
4 34,000
5 38,000

The internal rate of return is 13 percent.

a. If the reinvestment assumption of the netpresent value method is used, what will be the total value of theinflows after five years? (Assume the inflows come at the end ofeach year.) (Do not round intermediatecalculations and round your answer to 2 decimalplaces.)

b. If the reinvestment assumption of the internalrate of return method is used, what will be the total value of theinflows after five years? (Use the given internal rate ofreturn. Do not round intermediate calculations and round youranswer to 2 decimal places.)

c. Which investment assumption isbetter?
Reinvestment assumption of IRR
Reinvestment assumption of NPV

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Turner Video will invest $76,500 in a project. The firm’s costof capital is 12 percent. The investment will provide the followinginflows. Use Appendix A for an approximate answer but calculateyour final answer using the formula and financial calculatormethods.YearInflow1$24,000226,000330,000434,000538,000The internal rate of return is 13 percent.a. If the reinvestment assumption of the netpresent value method is used, what will be the total value of theinflows after five years? (Assume the inflows come at the end ofeach year.) (Do not round intermediatecalculations and round your answer to 2 decimalplaces.) b. If the reinvestment assumption of the internalrate of return method is used, what will be the total value of theinflows after five years? (Use the given internal rate ofreturn. Do not round intermediate calculations and round youranswer to 2 decimal places.)c. Which investment assumption isbetter?Reinvestment assumption of IRRReinvestment assumption of NPV