Year013456-Assuming an interest rate of 5%, which three cash flows have the bestNet Present Value? (Remember to show your work!):Estimated Response Time for Average Student: 2 minutes)a. Cash Flows C, D, and Fb. Cash Flows A, E, and Dc. Cash Flows D, E, and Fd. Cash Flows D, F, and Ge. Cash Flows D, E, and G-Assuming an interest rate of 5%, which three cash flows have the bestEquivalent Uniform Annual Worth (EU AW)? (Remember to show your work!):(Estimased Response Time for Average Student: 2 minutes)a. Cash Flows A, D, and Gb. Cash Flows C, D, and Ec. Cash Flows B, C, and Fd. Cash Flows E, F, and Ge. Cash Flows C, E, and FBA($75,000) $75,000)$15,000$0$15,000$0$15,000$15,000$15,000C($75,000)D$75,000)$0$50,000$0$25,000$27,000$10,000$15,000 $54,000 $5,000 $105,000$0$0E($75,000)$5,000$5,000$5,000$5,000$72,500$2,500IF00)$37,750$5,000$0$0$5,000$37,750G($75,000)$0$52,750$27,750$0$0$10,000

Equivalent Uniform Annual Worth (EUAW) is a measureto understand which project is better if they…

Answered: Assuming an interest rate of 5%, which…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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