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You are offered a 3-year investment opportunity that requires investing USD 1,667 today. The investment will pay you an income of USD 74 in year
You are offered a 3-year investment opportunity that requires investing USD 1,667 today. The investment will pay you an income of USD 74 in year 1, USD 68 in year 2 and USD 67 in year 3. At the end of year 3, it will also pay a total sum of USD 1,745. The current interest rate is 0.05 percent. Is the investment worth undertaking? Give your answer in 0.000. The formula is NPV =- INV + E1n CFj / (1+rn)".
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