Question
Which of the following three investments will have the highest NPV? All three cases require an initial investment of $45,000, and the required rate of
Which of the following three investments will have the highest NPV? All three cases require an initial investment of $45,000, and the required rate of return is 10%.
| A | B | C | |
| Year 1 net cash in | 85,000 | 60,000 | 55,000 |
| Year 2 net cash in | 75,000 | 60,000 | 65,000 |
| Year 3 net cash in | 65,000 | 60,000 | 75,000 |
| Year 4 net cash in | 55,000 | 60,000 | 85,000 |
| Total cash flow | 280,000 | 280,000 | 280,000 |
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
