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Assume that the firm invests $100,000 today to get $25,000 at Year 1, $35,000 at Year 2, $45,000 at Year 3, $50,000 at Year 4,
Assume that the firm invests $100,000 today to get $25,000 at Year 1, $35,000 at Year 2, $45,000 at Year 3, $50,000 at Year 4, $55,000 at Year 5, and $45,000 at Year 6. Whats the Net Present Value of this investment? Assume the interest(discount) rate of 10.2%.
Same facts as above: how would your answer change if the cash inflows increase by 15% and the discount rate decreases to 9.6%?
NOTE: The initial investment of $100,000 remains the same.
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