Your organization has been asked to invest in a continuing


Your organization has been asked to invest in a continuing care retirement center. Your investment will be $600,000 per year for the next five years. After five years, cash flows will be $400,000 per year for the next 15 years. If your discount rate is 10 percent:

a) What is the present value of the investment?

b) What is the present value of the cash flows?

c) What is the profitability index?

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Financial Management: Your organization has been asked to invest in a continuing
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