Question
An investment requires 15,000 today, and produces the first cash flow of 700 in two years (year 2). Cash flow is expected to grow at
An investment requires 15,000 today, and produces the first cash flow of 700 in two years (year 2). Cash flow is expected to grow at 4% a year after year 2.
1. What is the NPV of this investment if the discount rate is 10% ?
2. What is the rate of return of this investment?
Please provide all calculations
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Value Investing
Authors: Mike Hartley
1st Edition
979-8864443309
