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You are in the process of deciding whether or not to invest in a friend's business. For an investment of $50,000 today, you will be
You are in the process of deciding whether or not to invest in a friend's business. For an investment of $50,000 today, you will be entitled to receive payments each of the following three years. Your friend's business will make payments to you of $15,000 at the end of this year (t=1), $25,000 at the end of next year (t=2), and $35,000 at the end of the following year (t=3). The interest rate is 5.5% per year. The relevant cash flows in this analysis are detailed in the accompanying timeline. T= 0 1 2 3 -$50,000 +$15,000 +$25,000 +$35,000 What is the Net Present Value (NPV) of this investment opportunity? O A. $65,101 B. $21,090 C. $16,486 D. $25,000 E. $70,423 OF. None of the above options is within $25 of the NPV of this investment opportunity
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