Question
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $36,000 at the end of each
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay
$36,000
at the end of each of the next
3
years. The opportunity requires an initial investment of
$9,000
plus an additional investment at the end of the second year of
$45,000.
What is the NPV of this opportunity if the interest rate is
4%
per year? Should Marian take it?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
6th Edition
1473749247, 9781473749245
