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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

2.1%

per year? Should Marian take it?

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