Question
Marian Plunket owns her own business and is considering an investment. If she undertakes theinvestment, it will pay $4,880 at the end of each of
Marian Plunket owns her own business and is considering an investment. If she undertakes theinvestment, it will pay $4,880 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,220 plus an additional investment at the end of the second year of $6,100. What is the NPV of this opportunity if the interest rate is 2.5% peryear? Should Marian takeit?
What is the NPV of this opportunity if the interest rate is 2.5% peryear?
The NPV of this opportunity is $__________?
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The Company Valuation Playbook Invest With Confidence
Authors: Charles Sunnucks
1st Edition
1838470816, 978-1838470814
