Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a ) Calculate the net present value of the investment, which for the first three years brings a positive flow of PLN 2 , 6

a) Calculate the net present value of the investment, which for the first three years brings a
positive flow of PLN 2,600 at the end of each year, while the following year brings one flow
of PLN 1,800 in mid-year. The investment amount is PLN 7,500 now. Assume the interest
rate (cost of capital) at 8%.
b) Please also provide the discounted payback period for this investment.
c) Comment the results obtained in a and b) and the entire investment.
d) What amount of investment would give the same NPV as in a) if the investment would
bring PLN 2,800 annually for 3 years (only).
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics And Personal Finance

Authors: Irvin Tucker, Joan Ryan

1st Edition

1133562108, 978-1133562108

More Books

Students also viewed these Finance questions

Question

6 Explain the expectancy theory of motivation.

Answered: 1 week ago