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Jenny has rich parents who gifted her $5million to start a business. With encouragement from her MBA professor she decides to invest in her passion

Jenny has rich parents who gifted her $5million to start a business. With encouragement from her MBA professor she decides to invest in her passion for setting up a coffee shop with a lounge to attract UIS and Lincoln Land students on Toronto Road. Based on market research and forecasts of sales, Jenny is looking at a few investment options that are listed below. Current rate of interest is 6%:

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Investment today Future cash Flow Net present value (in $ million) (a year from today) NPV1? 1.0 million 1.8 NPV2? 2.0 3.3 NPV3? 3.0 4.4 NPV4 4.0 5.5 NPV5 5.0 6.0

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