An investment of 10000 has an investmentinflow ratio of 62

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(A) An investment of $10,000 has an investment/inflow ratio of 6.2 and a useful life of 12 years. What are the annual cash inflow and internal rate of return?

(B) The internal rate of return for an investment expected to yield an a nnual cash inflow of $2,000 is 14 percent. How much is the investment if the investment/inflow ratio is 6.14?

(C) What is the maximum investment a company would make in an asset expected to produce annual cash inflow of $5,000 a year for seven years if its required rate of return is 16 percent?

(D) How much investment per dollar of expected annual operating savings can a company afford if the investment has an expected life of eight years and its required rate of return is 14 percent?

Reference no: EM13576004

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