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Me dell has 100 income this year and zero income next year. The expected return from investing in the stock market is 10 percent a
Me dell has 100 income this year and zero income next year. The expected return from investing in the stock market is 10 percent a year. Me dell also has an investment opportunity having the same risk as the market in which he can invest 50 a this year and receive 100 after two years. Suppose me dell consumes 50 this year and invest in the project. What is the npv of the investment opportunity
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