An investment is expected to pay the following annual cash flows in the end of each period ($300 for period 1, $400 for period 2 and $500 for period 3). If an investor thinks the appropriate interest rate is 9%, what is the net present value (NPV) of this cash flow stream?

An investment is expected to pay the following annual cash flows in the end of each period ($300 for period 1, $400 for period 2 and $500 for period 3). If an investor thinks the appropriate interest rate is 9%, what is the net present value (NPV) of this cash flow stream? a. $592.99 b. $292.99 C. $997.99 d. - $492.99 QUESTION 5 Suppose you are informed that the price of this investment is actually $700. What is the expected rate of return of this investment? a. 30.17% b.29.54% C. 26.87% d. 34.28%