Question
DIY Pty Ltd has made an investment in another company that will guarantee it a cash flow of $21 846 each year for the next
DIY Pty Ltd has made an investment in another company that will guarantee it a cash flow of $21 846 each year for the next 5 years. If the company uses a discount rate of 10 per cent on its investments, what is the present value of this investment? (1 Mark for correct formula, 3 Marks for correct workings and 1 Mark for correct answer to equal a total of 5 Marks).
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Handbook Of Research Methods And Applications In Empirical Finance
Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk
1st Edition
1782540172, 978-1782540175
