Question
An investment costs $2500 today.It begins paying in exactly 5 years (it pays nothing in years 1-4). It pays $100 per year for 6 years
An investment costs $2500 today.It begins paying in exactly 5 years (it pays nothing in years 1-4). It pays $100 per year for 6 years and then $20 per year with no fixed ending date. The discount rate is 2% annually.What is the Net Present Value of the investment (NPV)?
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
