Question
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,320 at the end of each
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay
$5,320
at the end of each of the next
3
years. The opportunity requires an initial investment of
$1,330
plus an additional investment at the end of the second year of
$6,650.
What is the NPV of this opportunity if the interest rate is
1.7%
per year? Should Marian take it?
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The Municipal Budget Crunch A Handbook For Professionals
Authors: Roger L. Kemp
1st Edition
0786463740, 978-0786463749
