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You are considering an investment opportunity with the following costs and benefits. The applicable interest rate for this investment opportunity is 5% (effective annual rate).
You are considering an investment opportunity with the following costs and benefits. The applicable interest rate for this investment opportunity is 5% (effective annual rate). Calculate the NPV of this investment opportunity.
Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
---|---|---|---|---|---|---|---|
Cost | $ (10,000) | $ (5,000) | $ (1,000) | $ - | $ - | $ - | $ - |
Benefits | $ - | $ - | $ 5,000 | $ 7,500 | $7,500 | $ 5,000 | $ 1,000 |
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