3. A finance company has an opportunity to purchase three promissory notes from a broker for a total of $140,000 cash. The first note would pay $20,000 in one year, the second would pay S$70,000 in...

Extracted text: 3. A finance company has an opportunity to purchase three promissory notes from a broker for a total of $140,000 cash. The first note would pay $20,000 in one year, the second would pay S$70,000 in two years and the third $80,000 in three years. The finance company has set for itself a minimum acceptable rate of return of 10% effective. a. Evaluate the net present value of the investment at the company's MARR. b. State your conclusion about the acceptability of the profitability of this deal.