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You are deciding to make an investment of 1000. You expect to get the following returns: year 3 is 600, year 5 is 2200, year

You are deciding to make an investment of 1000. You expect to get the following returns: year 3 is 600, year 5 is 2200, year 8 is 1200. You can sell this investment at anytime to another investor. Q1 if based on risk you need a 4.8 percent return would you make this investment? Quantify in PV terms if this investment is acceptable. (think PV of all FCF minus initial investment in PV dollars how much excess or loss you would take. What return would you need to make this a fair investment?

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