Assignment:
The initial cost of an investment is $65,000 and the cost of capital is 10%. The return is $16,000 per year for 8 years. What is the net present value? What is the present value of $5,600 when the interest rate is 8% and the return of $5,600 will not be received for 15 years?
Provide complete and step by step solution for the question and show calculations and use formulas.