Question
In the popular video game Bugsnax, Cromdo, a Red Grumpus on Snaktooth Island, captures a particular Bugsnax named Cheepoof in bulk. It took Cromdo $120
In the popular video game Bugsnax, Cromdo, a Red Grumpus on Snaktooth Island, captures a particular Bugsnax named Cheepoof in bulk. It took Cromdo $120 to capture 5 Cheepoofs, and plans to sell them all in 5 years. The market value of Cheepoof is different based on the particular year. At the end of year 1, Cromdo sells 1 Cheepoof for $130. At the end of year 2, Cromdo sells another Cheepoof for $135. At the end of year 3, Cromdo sells a Cheepoof for $160. After year 3, Snaktooth Island faced a recession, negatively affecting Cheepoof's market price. At the end of year 4, Cromdo sells a Cheepoof for $80, and at the end of year 5, Cromdo sells his last Cheepoof for $85. Calculate the present value of the Cheepoof investment. Assume a rate of i = 10%.
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