Question
Calculate the net present value of a business deal that costs $2,500 today and pays a monthly dividend for five months. The first dividend is
Calculate the net present value of a business deal that costs $2,500 today and pays a monthly dividend for five months. The first dividend is $1,500, the next is $1,700, and the remaining dividends are $2200 each. If the annual interest rate is 13%, what is the NPV of the investment? Choose ALL correct answers if more than one exist.
The NPV is approximately $7,300 if the payments are at the beginning of the payment period.
The NPV is approximately $3,700 if the payments are at the end of the payment period.
The NPV is approximately $6,970 if the payments are at the beginning of the payment period.
The NPV is approximately $7,300 if the payments are at the end of the payment period. The NPV is approximately $4,200 if the payments are at the beginning of the payment period.
The NPV is approximately $6,895 if the payments are at the end of the payment period.
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