Question
An investment requires an outlay of $100,000 today. Cash inflows from the investment areexpected to be $40,000 per year at the end of years 4,
An investment requires an outlay of $100,000 today. Cash inflows from the investment areexpected to be $40,000 per year at the end of years 4, 5, 6, 7, and 8. you require a 20 percent annual rate of return on this type of investment. answer the following:
a)NVP?
b)IRR?
c)Payback period?
d) invest? yer or no?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
