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 $55,000 at the end of each of the next three years. The opportunity requires an initial investment of $30,000 plus an additional investment at the end of the second year of $35,000. What is the NPV of this opportunity if the cost of capital is 8% per year? Should Marian take it?

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Corporate Finance

ISBN: 9780273792024

3rd Global Edition

Authors: Peter Demarzo, Jonathan Berk

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