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How do I calculate for NPV, with initial investment unknown? Trying to find the maximum one should pay for an opportunity. Reakha has been offered
How do I calculate for NPV, with initial investment unknown? Trying to find the maximum one should pay for an opportunity. "Reakha has been offered the opportunity to buy a small medical transcription business, which is projected to have the following year-end cash flows over the next five years. If she demands 11% return on her investments, what is the maximum she should pay for this opportunity?" End of Year 1 = $11,500 Cash Flow; Year 2 = $15,000; Year 3 = $13,500; Year 4 = $15,000, Year 5 = $18,500 Thanks.
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