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You are making a $50,000 investment and feel that a 15 percent rate of return is reasonable given the nature of the risks involved. You
You are making a $50,000 investment and feel that a 15 percent rate of return is reasonable given the nature of the risks involved. You feel you will receive at least $8,000 in the first year, $21,000 in the second year, $43,000 in the third year, and potentially could see a cash inflow of $7,000 in the fourth year. What is the net present value of this investment given your expectations?
a)$6,140.04 | ||
b) | $5,111.01 | |
c) | $7,529.10 | |
d) | $8,218.40 |
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