Question
You are considering the investment of $10,000 (today) in a lemonade stand. Also, you expect the stand to generate the following future cash flows: At
You are considering the investment of $10,000 (today) in a lemonade stand.
Also, you expect the stand to generate the following future cash flows:
- At the end of year 1: $3,000
- At the end of year 2: $2,000
- At the end of year 3: $1,000
- At the end of year 4: $6,000
What is the NPV (Net Present Value) of this project, if you require a 17% rate of return?
(Answer to the nearest $0.01)
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The AMA Handbook Of Financial Risk Management
Authors: John J. Hampton
1st Edition
0814417442, 978-0814417447
