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An investor invests $500. The investment pays $100 at the end of year 2, $200 at the end of year 3 and $300 at the
An investor invests $500. The investment pays $100 at the end of year 2, $200 at the end of year 3 and $300 at the end of year 4.
Calculate the net present value (NPV) of the investment using interest preference rate of 5.7%.
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I got
v = 1/1.12
So would it just be NPV = -500 + 100(v)^2 + 200v^3 + 300v^4?
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