Question
9. You have been offered the following investment opportunity, if you pay $3500 today, you will receive $1000 at the end of each of the
9. You have been offered the following investment opportunity, if you pay $3500 today, you will receive $1000 at the end of each of the next three years. Assuming that you could otherwise earn 8% per year on your money, What is the NPV for this opportunity?
10. Based on your answer to question 9, given the above criteria, would you make the investment and why?
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Handbook Of The Fundamentals Of Financial Decision Making
Authors: Leonard C MacLean, William T Ziemba
1st Edition
9814417343, 978-9814417341
