NPV after 5 years ?

Profability index for investment ?

shoukd you donthe investment ?

You are considering investing $2,000 into the stock market. In the first 3 years. you are expecting to earn $500 per year In years 4 and 5 , you are expecting great gains of $1000 each year. For this investment, you would like a discount rate of 10% and you are assuming an inflation rate of 4% Using the discounted cash flow approach: What would be your NPV after 5 years? What is the profitability index for this investment? Should you do the investiment