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2. You are evaluating a purchase using the net present value method. Using an interest rate of 3%, find the NPV for this asset. Based

2. You are evaluating a purchase using the net present value method. Using an interest rate of 3%, find the NPV for this asset. Based on this, should you buy the asset or not? Justify your answer.

PROBLEM 2
Inputs
Interest rate
0
1
2
3
4
Outputs
NPV
Invest?
Justification

0

(112,000)

1

26,000

2

30,000

3

34,000

4

38,000

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