A finance company has offered a scheme of investment where a person investing 40,000, presently is entitled to returns of 8,000, 9,000, 10,000, 11,000 and 12,000 in the next five years. The indicated rate of interest is 10% p.a. Advise whether the investment is profitable. (PVIF 10%, 1 = 0.9091, PVIF 10%, 2 = 0.8264, PVIF 10%, 3 = 0.7513, PVIF 10%, 4 = 0.6830 and PVIF 10%, 5 = 0.6209).
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