Answer: please refer to the explanation section
Explanation:
Investment $200 000, Profit = 50 000 and n = 6
Present Value(using 7%) = 50000/ (1 + 0.07)^6 = 33317.11
Present Value(using 8%) = 50000/ (1 + 0.08)^6 = 31508.48
Present Value(using 9%) = 50000/ (1 + 0.09)^6 = 29813.37
Present Value(using 10%) = 50000/ (1 + 0.10)^6 = 28223.70
Present Value(using 7%) = 50000/ (1 + 0.12)^6 = 25331.56
Investment $200 000, Profit = 35 000 and n = 10
Present Value(using 7%) = 35000/ (1 + 0.07)^10 = 17792.23
Present Value(using 8%) = 35000/ (1 + 0.08)^10 = 16211.77
Present Value(using 9%) = 35000/ (1 + 0.09)^10 = 14784.38
Present Value(using 10%) = 35000/ (1 + 0.10)^10 = 13494.02
Present Value(using 12%) = 35000/ (1 + 0.12)^10 = 11269.06
All present value figures have been rounded of to two decimal places
