The time value of money Consider the following cash flows from today (year zero) to year 3
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The time value of money Consider the following cash flows from today (year zero) to year 3 in pounds sterling:
Your interest rate (or discount rate) in pounds is 10 percent. a Compute the net present value (NPV) at a 10 percent discount rate and the internal rate of return (IRR) of this investment in pounds. b If you were to sell this investment today (its NPV in pounds), how much would it be worth in USD at 1.76 dollars per pound?
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Mehwish Aziz
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