Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it

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Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay \($8000\) at the end of each of the next three years. The opportunity requires an Time Value of Money initial investment of \($2000\) plus an additional investment at the end of the second year of \($10,000.
What\) is the NPV of this opportunity if the interest rate is 10% per year? Should Marian take it?

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Corporate Finance

ISBN: 9781292446318

6th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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