Question
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $ 4 comma 720 at the
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $ 4 comma 720 at the end of each of the next 3 years. The opportunity requires an initial investment of $ 1 comma 180 plus an additional investment at the end of the second year of $ 5 comma 900. What is the NPV of this opportunity if the interest rate is 2.4 % per year? Should Marian take it? What is the NPV of this opportunity if the interest rate is 2.4 % per year? The NPV of this opportunity is $ nothing. (Round to the nearest cent.)
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