Question
You are considering investing in a security that will pay you $1,000 in 30 years. a.If the appropriate discount rate is 10 percent, what is
You are considering investing in a security that will pay you
$1,000
in
30
years.
a.If the appropriate discount rate is
10
percent,
what is the present value of this investment?
b.Assume these investments sell for
$365
in return for which you receive
$1,000
in
30
years. What is the rate of return investors earn on this investment if they buy it for
$365?
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The Principles Of Project Finance
Authors: Rod Morrison
1st Edition
1409439828, 9781409439820
