Question
Assume that the firm invests $155,000 today to get $25,000 at Year 1 (i.e. one year from now), $43,000 at Year 2, $66,000 at Year
Assume that the firm invests $155,000 today to get $25,000 at Year 1 (i.e. one year from now), $43,000 at Year 2, $66,000 at Year 3, $56,000 at Year 4, $36,500 at Year 5, $29,500 at Year 6. Whats the Net Present Value of this investment? Assume the Interest (discount) rate of 10.4%.
Group of answer choices
$28,221.50
$24.924.82
$26,512.35
$25,945.92
How would your from Question 31 change if:
1) The money made beginning at Year 1 would increase by 15% each year (for example, $25,000 made under the default scenario now increases to $25,000 X 1.15 = $28,750), and
2) The discount rate goes up from 10.40% to 16.75%.
Note: Assume the amount of initial investments remain the same at $155,000.
Group of answer choices
$28,256.82
$21,008.45
$28,221.50
$24,924.82
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