Question
An investment opportunity requires an outlay of $x today but is not expected to have any cash inflows for the coming four years. At
An investment opportunity requires an outlay of $x today but is not expected to have any cash inflows for the coming four years. At the end of year five its expected cash flow is $2,800 and that is expected to stay constant in perpetuity. The required rate of return on the investment is 9% per year. Calculate the fair value of x.
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Financial Management For Decision Makers
Authors: Peter Atrill, Paul Hurley
2nd Canadian Edition
138011605, 978-0138011604
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