Investiment opportuity as folows: Year 0, unknown cash flow, Year 1 = 200 cash flos,,Year 2 = 400 cash flow, Year 3 = -100 cash flow, year 4= 500 cash flow, Year 5 = 200 cash flow
a. If other investments with comparble risk are earning 12% then how mudh shoud you be willing to pay for this investment?
If you purchase it for 800 then what is the annual rate of return on the investment?