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Maya Jones is planning to venture into a new business line that is expected to provide five years of cash inflows and require an initial
Maya Jones is planning to venture into a new business line that is expected to provide five years of cash inflows and require an initial investment of $1,000,000 the discount rate is 17%.
Using the probability index evaluate whether the ventures a good investment opportunity
Years | Expected cash flow |
0 | 1,000,000 |
1 | 700,000 |
2 | 300,000 |
3 | 300,000 |
4 | 250,000 |
5 | 100,000 |
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