Turner Video will invest $96,500 in a project. The firm cost of capital is 11%. the...

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Turner Video will invest $96,500 in a project. Thefirm cost of capital is 11%. the investment will provide thefollowing inflows.
year.                 inflows
1.                       $34000
2.                         36000
3.                         31000
4.                         39000
5.                         4300
The Internal rate of return is 12%
A. if the reinvestment assumption of net present value is use. Whatwill be the total value of inflows in the next five year.
B. What will be the reinvestment assumption if the Internal RateReturn method is used?

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Turner Video will invest $96,500 in a project. Thefirm cost of capital is 11%. the investment will provide thefollowing inflows.year.                 inflows1.                       $340002.                         360003.                         310004.                         390005.                         4300The Internal rate of return is 12%A. if the reinvestment assumption of net present value is use. Whatwill be the total value of inflows in the next five year.B. What will be the reinvestment assumption if the Internal RateReturn method is used?

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