Question
An investment requires $16,000 today, and produces the first cash flow of $800 in two years (year 2). Cash flow is expected to grow at
An investment requires $16,000 today, and produces the first cash flow of $800 in two years (year 2). Cash flow is expected to grow at 2% per year after year 2.
a) What is the NPV of this investment if the discount rate is 6% ?
NPV =
b) What is the rate of return of this investment?
Rate of return =
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
