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 10% per year?
Should Marian take it?
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ISE Real Estate Finance And Investments
Authors: Jeffrey Fisher William B. Brueggeman
17th International Edition
1264892888, 9781264892884
