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P 8-7 (similar to) Question Help Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay
P 8-7 (similar to) Question Help Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,040 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,010 plus an additional investment at the end of the second year of $5,050. What is the NPV of this opportunity if the interest rate is 16% per year? Should Marian take it? What is the NPV of this opportunity if the interest rate is 1.6% per year? The NPV of this opportunity is $ (Round to the nearest cont.)
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